Terreno Resources, a Canada-based mining exploration and development company, has signed a memorandum of understanding (MoU) to acquire biofuels enterprise Dominican Renewables (DRI).
As part of the deal, the company will acquire all the shares of DRI, where it will become a wholly-owned subsidiary of Terreno.
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The latest deal will allow Terreno to benefit from synergies at its existing portfolio of mineral exploration projects in Argentina and the Dominican Republic.
DRI holds agreements for over 12,000 hectares of farmable land in the Dominican Republic to produce biofuels.
DRI plans to start initial production in early 2014 with about 10 million gallons of biodiesel per annum, and full production by 2015 with about 20 million gallons per year.
It has also made material progress with several off-take arrangements and refinery equipment supplier to supply renewable fuels for both large commercial and local enterprises.
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By GlobalDataTerreno Resources chairman John Icke said that the company is aware of DRI prior to firm’s mineral exploration work in the Dominican Republic, as it hired Bruce Keith (DRI’s CEO) to become the CEO of Terreno.
“Since being in the country we have become acutely aware of the reliance and prohibitive costs of traditional fuel imports with no current local supply,” Icke added.
“DRI is uniquely positioned to address this issue in a socially responsible manner through providing a biofuel component blended with traditional fuel products.”
Terreno has option to buy El Carrizal Concession in the Dominican Republic, and also holds option agreements on two exploration projects in Argentina, which include Poposa in San Juan, and Socompa in Salta.
