As per the agreement, Aura can earn a 10% working interest in a proposed agricultural biodiesel project in the Cross River State, Nigeria (Project). The project will use up to 3,000 hectares of arable land suitable for the purpose of Jatropha feedstock cultivation and bio-fuel production.
The agreement includes the plant with an initial annual production capacity of 37.5 million liters, with the intent of increasing annual production to over 70 million liters within the first 12 months of production.
Aura is currently in the process of conducting its due diligence assessment of the project, and, pursuant to the LOI, the parties have agreed to enter into a formal agreement by June 21, 2010.
The LOI contemplates that as a first payment for the project, Aura will issue 2 million common shares to the Vendor or its assigns on or before June 28, 2010, and a second payment to the Vendor in the amount of $200,000 on or before August 12, 2010.
Aura will also issue a final payment of of $10,000,000 to the Vendor within 12 months after the first payment, following which it will be granted a 20% working interest in the project.
Harry Lappa, president of Aura, said: “We feel that the focus of Aura, and more specifically the development of this project, is perfectly in line with the increased global emphasis and demand for cleaner, sustainable alternative fuel sources.
“The potential demand for biodiesel is substantial: within Nigeria itself, roughly 5 billion liters of diesel fuel is used annually.”
