Cielo Signs Commercial Purchase Agreement For Bio-Diesel Refinery

Cielo Waste Solutions (CSE: CMC) has announced that it signed a Commercial Purchase Agreement with XR Resources to buy a property located in High River, Alberta, on which there is already a bio-diesel refinery.
As quoted in the press release:

This multi-feedstock processing plant was built in 2009 for an approximate capex cost of $10.2 million and was capable of producing 16 million liters/year of bio-diesel. The aggregate purchase price is $2,300,000 (the “Purchase Price”), consisting of both share and cash consideration. The initial installment of the Purchase Price (the “Deposit”), to be paid by Cielo to XR in consideration for the rights granted in the Agreement, will be paid in the form of 5,000,000 common shares (the “Shares”) in the capital stock of Cielo at a price of $0.06 per share, which Shares will be held in trust by legal counsel until the transaction is completed. The balance of the Purchase Price is comprised of a cash payment of $2,000,000, to be paid upon satisfaction of the Conditions (as defined below), along with the release of the Shares to XR.
The purchase of the Property and the Refinery is subject to certain conditions (the “Conditions”), including a financing condition, Cielo’s ability to acquire required permits, and due diligence being completed by Cielo to its satisfaction on or before February 7, 2017. Once the Conditions have been fulfilled or waived, and the Purchase Price paid, Cielo will acquire all right, title and interest in and to the Property and the Refinery. The anticipated closing date is February 28, 2017.
Don Allan, President of Cielo, stated, “This is a game changer for Cielo. Not only will this fast track Cielo into commercialization and revenue, but the existing infrastructure that we can use will lower our capex costs by approximately 40%.”

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