Good Announcement, Care to vote?29 January 2007The...

Good Announcement, Care to vote?

29 January 2007
The Manager
Company Announcements Office
Australian Stock Exchange Limited
10th Floor, 20 Bond Street
SYDNEY NSW 2001
AGRI ENERGY LIMITED
BEATRICE BIODIESEL PROJECT FINANCE
Dear Sir/Madam,
Agri Energy Limited (ASX code: AAE) formerly Australian Ethanol Limited, today announced the signing of the senior debt facility of US$33 million for the development of the Beatrice Biodiesel Project. Coupled with the equity raising of AUD$40 million (US$31 million) approved by shareholders at the Shareholder Meeting in Melbourne, Australia on 19 January 2007, this completes the project finance package for development of the Beatrice Biodiesel Project in Nebraska, United States.
The senior debt documentation was signed on Friday 26 January 2007 in Minneapolis Minnesota with Agstar Financial Services, a major United States midwest farm credit agency backed by the Federal Government and lead bank, Home Federal Savings Bank, US Canadian Biofuels Inc, the United States wholly owned subsidiary of AAE and Beatrice Biodiesel LLC, the wholly owned Nebraska based developer of the Beatrice Biodiesel Project. The senior debt facility is a ten year loan package of US$28 million plus a US$5 million working capital facility.
The document signing was attended by the Agri Energy Limited Chairman and CEO, Mr Peter Anderton, US Canadian Biofuels Inc CEO, Ms Carla O Andres and Mr Grant Freeman the representative of the AAE group’s Sydney based merchant bank and financial advisers, Transocean Securities Pty Ltd.
The Beatrice Biodiesel project is 95% complete with engineering, all major equipment has been ordered, a majority of the site contracts have been awarded and construction is over 15% complete. The project is on budget and scheduled for biodiesel production in September of 2007.
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After the signing of the senior debt documentation, Mr Anderton said “This is a landmark day for Agri Energy Limited and now enables the group to proceed forward to cash flow later in the year. The Company can now consolidate on other strategic plans and opportunities in Australia, the United States and Europe.”
“After the difficulties associated with the collapse of Amaranth LLC which was contracted to provide the initial equity package to the 50 million gallon per year Beatrice Biodiesel Project, it is pleasing that the Company has secured the ongoing support of its bankers and shareholders to take the group forward to biofuels production.”
US Canadian Biofuels Inc this month also submitted the Air Emissions Permit Application to the Sate of Nebraska Department of Environmental Quality (NDEQ) for the Beatrice Ethanol Project to be developed adjacent to the biodiesel facility. Financing for the ethanol facility is planned for the second half of calendar 2007. The Beatrice biofuels complex will be the first integrated ethanol and biodiesel facility to be constructed internationally. An oil seed crusher is also planned for development at the Beatrice biofuels complex over the next three years.
Agri Energy Limited will allot the new shares approved by shareholders, at the 19 January 2007 general meeting, today. The new shares will be fully tradable on the Australian Stock Exchange later in the week.
Yours faithfully
Peter W F Anderton
Chairman & Chief Executive Officer
Agri Energy Limited