Lignol Energy Corp. announced it has agreed to acquire all of the outstanding and issued ordinary shares of Territory Biofuels Ltd. (TBF) and thereby increase its ownership from 55 to 100 percent. TBF owns the largest biodiesel plant in Australia with an annual capacity of 140 million liters (approximately 37 million gallons) with plans to restart operations in the second half of 2014.

LEC’s offer to acquire all of the 4,771,367 outstanding ordinary TBF shares owned by other TBF shareholders, in exchange for the issue of 2.5 LEC common shares for each TBF ordinary share, will result in the issue of an additional 11,928,419 common shares of LEC. LEC’s offer has been accepted by all of TBF’s remaining shareholders and is subject to TSX Venture Exchange approval. The closing of this acquisition is expected to be completed on or before Jan. 31, at which time TBF will become a wholly owned subsidiary of LEC.

Upon the closing of the transaction, the total number of LEC issued and outstanding shares will be 164,019,087 (227,992,425 on a fully diluted basis).

TBF owns a large-scale biorefining facility located in Darwin, Northern Territory, Australia, which includes a Lurgi-designed biodiesel plant and the largest glycerin refinery in Australia. The facility was commissioned in 2008 at a cost of A$80 million, along with 38 million liters of related tankage, now leased by TBF. The biodiesel plant is the largest in Australia with a rated capacity of 140 million litres per year. The plant was originally built to run on palm oil and food-grade vegetable oil, however the plant was shut down in 2009 due to challenging technical and economic conditions.  TBF is in the process of raising funds to restart the existing facility utilizing environmentally certified, refined, bleached and deodorized palm oil. In 2015, TBF plans to integrate new feedstock pretreatment technologies and catalysts to process a broader range of feedstocks such as lower quality tallow, used cooking oil and palm sludge oil; a waste product from palm oil mill extraction.