Post acquisition, DRI will become a wholly-owned subsidiary of Torreno.
Incorporated in 2008, DRI is a privately held company that develops a fully integrated biofuel operation. With DRI purchase, Torreno aims to focus on biofuel production in the Dominic Republic region and also expand its existing portfolio of mineral exploration projects in Argentina and Dominic Republic.
Terreno Resources chairman John Icke said they had been aware of DRI prior to their mineral exploration work in the Dominican Republic, having 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. The success of this transaction brings near term cash flow potential to Terreno with the ability to scale up the operations in the future."
The transaction, however, may constitute a Change of Business as defined in the policies of TSX Venture Exchange (TSXV) and is subject to the approval of the TSXV and all other regulatory approvals, claimed the company.
