VANCOUVER, Dec. 5, 2013 /CNW/ - Lignol Energy Corporation
(TSXV: LEC) ("LEC" or the "Company"), is pleased to announce that
its wholly-owned subsidiary, Lignol Innovations Ltd. ("LIL"), has
signed a Letter of Intent ("LOI") with Sichuan Xilin IM/EX Co. Ltd.
of Chengdu, China ("Xilin"). The
LOI was signed on December
3rd, 2013 in Guangzhou in the presence of the Honourable
Teresa Wat, British Columbia's
Minister of International Trade and Minister Responsible for the
Asia Pacific Strategy and Multiculturalism. The LOI provides for
LIL and Xilin to explore options to cooperate in pursuing
opportunities to commercialize LIL's proprietary biorefining
technology in China, and
contemplates possible formation of a Joint Venture company as well
as various investment options.
"We are delighted to have signed this LOI with
Xilin who are well placed to help us develop the China market for our biorefining technology
and its products," said Ross
MacLachlan, CEO and Chairman of LEC. "We are hopeful that we
can leverage the market knowledge and access to feedstock and
financial resources of Xilin for our mutual benefit."
"We are pleased to be working with Lignol to
explore ways to bring their technology to the China market," said Zeng Ai Guo, Chairman and General Manager of
Xilin. "We believe that there is strong business potential for
manufacturing biofuels and biochemicals from wood and agricultural
residues in China and we look
forward to reaching definitive agreements with Lignol to deploy
their technology."
The LOI, which is non-binding on either party,
was executed by LIL's Chief Operating Officer, Michael Rushton, at a signing ceremony in
Guangzhou, which also involved six
other B.C. companies and their Chinese counterparts. Minister Wat
stressed the importance of bilateral cooperation in business
between B.C. and China in creating
jobs and prosperity on both sides of the Pacific.
"As British
Columbia continues to diversify our trade and investment
partners, we are deepening our relationships with China and other growing economies across the
Asia Pacific," Minister Wat said.
"British Columbia is a world
leader in clean technology solutions, and we congratulate Lignol
Energy and Sichuan Xilin on this new agreement and look forward to
seeing the positive results of their collaboration in the months
and years to come."
About Sichuan Xilin IM/EX Co. Ltd.
Sichuan Xilin IM/EX Co Ltd. is a privately owned forest products
production and import/export company based in Chengdu with sawmill assets in Russia and China. Xilin is mainly focused on forest
resource development, timber processing and timber trade, and has
millions of acres of forest resources in Russia and China. Xilin is keen to promote biorefinery
projects in the China market.
Further information on Xilin is available at
www.scxilin.com.cn.
About Lignol Energy Corporation ("LEC") and
Lignol Innovations Ltd. ("LIL")
Lignol Energy Corporation is an emerging producer of biofuels,
biochemicals and renewable materials from waste. LEC owns 100% of
Lignol Innovations Ltd., 55% of Territory Biofuels Limited, 21% of
Australian Renewable Fuels Limited, 51% of Neutral Fuels
(Melbourne) Pty Ltd and 20% of
Neutral Fuels Parent Company Ltd. The Company intends to
invest in, or otherwise obtain, equity interests in energy related
projects, which have synergies with the Company and have the
potential to generate near term cash flow. The Company's
wholly owned subsidiary, LIL is a leading technology company in the
advanced biofuels and renewable chemicals sector undertaking the
development of biorefining technologies for the production of
advanced biofuels, including fuel-grade ethanol, and other
renewable chemicals from non-food cellulosic biomass feedstocks.
LIL's modified solvent based pre-treatment technology facilitates
the rapid, high-yield conversion of cellulose to ethanol and the
production of value-added biochemical co-products, including high
purity HP-LTM lignin. HP-LTM lignin
represents a new class of high purity lignin extractives (and their
subsequent derivatives) which can be engineered to meet the
chemical properties and functional requirements of a range of
industrial applications that until now has not been possible with
traditional lignin by-products generated from other processes. LIL
is executing on its development plan through strategic partnerships
to further develop and integrate its core technologies on a
commercial scale. Further information is available on the Company's
website at www.lignol.ca.
Caution concerning forward-looking
statements:
Certain statements contained in this document may constitute
forward-looking information within the meaning of applicable
securities laws. Such forward-looking statements or information
include, without limitation, statements or information about LIL
and Xilin's ability to agree to and subsequently sign definitive
agreements related to the joint pursuit of opportunities to
commercialize LIL's proprietary biorefining technology in
China, including the ability to
possibly establish a Joint Venture company as well as to complete
any investment options which may be agreed to in the future between
the parties, LIL's ability to successfully scale its technology,
LIL's ability to execute its development plan through strategic
partnerships to further develop and integrate its core technologies
on a commercial scale, and LEC's ability to invest in, or
otherwise obtain, equity interests in energy related projects which
have potential synergies with the Company and which have the
potential to generate near term cash flow.
Often, but not always, forward looking
statements or information can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates" or "does not anticipate", or "believes" or variations
of such words and phrases or words and phrases that state or
indicate that certain actions, events or results "may", "could",
"would", "might" or "will" be taken, occur or be achieved.
Such statements or information reflect LEC's
current views with respect to future events and are subject to
certain risks, uncertainties and assumptions including, without
limitation, LEC's ability to raise additional capital to fund
operations and to support the capital requirements of its
affiliates, LIL's ability to establish a business relationship with
Xilin and to commercialize its technology in China, the requirements of the potential
effect of changes in government policy relating to the environment
and incentives for renewable fuels, the potential impact of changes
in the prices of feedstock and the market price of liquid fuels
including biodiesel, ethanol and renewable chemicals, the ability
of LEC's subsidiaries, associated and investee company to generate
future near term profits and to pay dividends, and to meet
increasing regulatory requirements, and LEC's ability to divest the
ARW ordinary shares due to modest trading volumes.
Many factors could cause LEC's actual
results, performance or achievements to be materially different
from any future results, performance or achievements that may be
expressed or implied by such forward-looking statements or
information, including among other things, financial market
conditions which will impact LEC's ability to finance its
operations and to meet future capital and investment requirements,
the demand for the market price of liquid fuels including gasoline,
biodiesel, ethanol, the market price and demand for renewable
chemicals, risks relating to the protection of technology from
infringement and those risk factors which are discussed elsewhere
in documents that LEC files from time to time with securities and
other regulatory authorities. Should one or more of these risks or
uncertainties materialize, or should assumptions underlying the
forward-looking statements or information prove incorrect, actual
results may vary materially from those described herein as
intended, planned, anticipated, believed, estimated or expected.
Except as required by law, the Company expressly disclaims any
intention or obligation to update or revise any forward looking
statements and information whether as a result of new information,
future events or otherwise. All written and oral forward-looking
statements and information attributable to us or persons acting on
our behalf are expressly qualified in their entirety by the
foregoing cautionary statements.
SOURCE Lignol Energy Corporation