Cielo Waste Solutions to buy Alberta biodiesel refinery

In Canada, Cielo Waste Solutions Corp. announced it has signed a Commercial Purchase Agreement with XR Resources Inc. to purchase a property located in High River, Alberta, on which there is an existing bio-diesel refinery.

This multi-feedstock processing plant was built in 2009 for an approximate capex cost of C$10.2 million and was capable of producing 16 million liters/year of bio-diesel. The aggregate purchase price is C$2,300,000 consisting of both share and cash consideration. The initial installment of the Purchase Price 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 in the capital stock of Cielo at a price of C$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 C$2,000,000, to be paid upon satisfaction of the Conditions, along with the release of the Shares to XR.