gressie / part 127 Aug 2007 23:25
On the 2nd August, Libra Natural Resources announced the completion of a Canadian wood pellet plant acquisition for an estimated cost of C$6 million, which will be funded from a mixture of cash and equity. The completed acquisition of the project, known as West Kootenay Pellets Ltd, effectively gives Libra development rights associated with a proposed 60,000 metric tonne pellet plant in the West Kootenay region of British Columbia from Sure Fire Capital Corporation. Upon receipt of the prerequisite permits, the plant will take approximately six months to construct, with expected commercial production started during the first quarter of 2008.
The West Kootenay project is located on a seven acre site adjacent to a wood processing plant, and fibre will be supplied from a number of local sources under already signed contracts. The initial fibre supply contract is for seven years, which can be further renewed for a further period of sever more years. The expansion forms part of Libra’s expansion and significant increase in size, scale and investment in its wood pellet operations.