Lignol Energy Corp. (LEC.V) announced that it has agreed to acquire an additional 2.67 million shares of Territory Biofuels Limited or TBF for A$1 million under a TBF private placement offering transaction, which also provides for the further issuance of approximately 0.25 million shares of TBF to other shareholders of TBF.
Upon completion, Lignol Energy will become the majority shareholder with approximately 56% of the issued shares of TBF and 60% on a fully diluted basis.
At full capacity the Darwin refinery will be capable of producing up to 150 million litres of biodiesel per year. The facility also includes the only glycerine refinery in Australia. Crude glycerine is a bi-product waste stream of most biodiesel plants which can be upgraded to a refined form of glycerine with attractive margins and financial returns.
As a result of LEC's achievement in becoming the majority shareholder, Difference Capital Funding Inc. has agreed to assist LEC in the funding this investment by increasing the existing line of credit established earlier this year by $1 million to $6 million under similar terms to the existing facility.
TBF owns a large scale biorefining facility located in Darwin, Northern Territory, Australia, which includes a Lurgi designed biodiesel plant and the only glycerine refinery in Australia. The facility was commissioned in 2008 at a cost of A$80 million, along with 38 million litres of related tankage, now leased by TBF. Originally built to run on food-grade vegetable oil, the plant was shut down in 2009 due to feedstock constraints.
TBF is in the process of raising funds to restart the existing facility utilizing feedstocks such as tallow and used cooking oil and then plans to integrate new feedstock pre-treatment technologies and catalysts to process a broader range of feedstocks such as lower quality tallow and palm sludge oil; a waste product from palm oil mill extraction.
TBF has established trading relationships with its shipping, off-take and feedstock partners which it expects will allow it to profitably start up and operate the facility. Two LEC executive officers and directors, Ross MacLachlan and Stephen Morris have been appointed directors of TBF with Mr. MacLachlan also having assumed the role of Chairman of TBF.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.