Lignol secures CAD-5m credit facility from DFC

Feb 28, 2013 - Canadian biorefining technology company Lignol Energy Corp (CVE:LEC) said Wednesday it had inked an agreement for a CAD-5-million (USD 4.9m/EUR 3.7m) secured credit facility from its shareholder Difference Capital Funding Inc (DFC).

The interest rate on the facility will be 8% per year and the maturity of the loan would come on February 27, 2014 or on the date of the completion of an equity financing with gross proceeds of at least CAD 5 million.

Under the terms of the facility agreement, the funds will initially be secured with all of LEC's personal property until DCF has a perfected security interest in the shares of biodiesel producer Australian Renewable Fuels Ltd (ASX:ARW) owned by LEC. The general security agreement will be terminated upon DCF securing interest in the ARW shares.

(CAD 1 = USD 0.975/EUR 0.745)

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