Aura and Tolao Energy Nigeria enter into formal agreement
Aura Bio Corp., a US company operating in Nigeria, has entered into a formal agreement with Nigerian biodiesel producer Tolao Energy. The agreement comes after Aura Bio Corp. completed its due diligence assessment of the biodiesel project in Cross River State, Nigeria.
The project will see the cultivation of jatropha on 3,000 acres of land and the construction of a biodiesel plant with an initial annual production capacity of 37.5 million litres. This is expected to reach 70 million litres per year within the first 12 months of production.
When speaking about revenue Harry Lappa, president of Aura Bio Corp. said: ‘The fact that we would be able to source the raw materials directly greatly increases the project’s profitability, and ultimately shareholder return.’ Initial gross revenues are expected to reach around $25 million (€19.7 million) a year.
As part of the agreement, Aura has advanced 2 million common shares of the company to Tolao, as the first payment, pursuant of the terms of the Letter of Intent.
According to the agreement terms, a second payment of $200,000 will be made to Tolao by 23 August 2010 before a final payment of $10 million within one year of the first payment.
The project will see the cultivation of jatropha on 3,000 acres of land and the construction of a biodiesel plant with an initial annual production capacity of 37.5 million litres. This is expected to reach 70 million litres per year within the first 12 months of production.
When speaking about revenue Harry Lappa, president of Aura Bio Corp. said: ‘The fact that we would be able to source the raw materials directly greatly increases the project’s profitability, and ultimately shareholder return.’ Initial gross revenues are expected to reach around $25 million (€19.7 million) a year.
As part of the agreement, Aura has advanced 2 million common shares of the company to Tolao, as the first payment, pursuant of the terms of the Letter of Intent.
According to the agreement terms, a second payment of $200,000 will be made to Tolao by 23 August 2010 before a final payment of $10 million within one year of the first payment.
Loading ...
