Peat Resources Limited (the "Company") +14.29% announces that it has engaged IBK Capital Corp. to complete a best efforts private placement of up to $100,000. The placement consists of 2,500,000 units at $0.04 per unit. Each unit consists of one common share and one common share purchase warrant. Each warrant is exercisable for one year from the closing date at an exercise price of $0.05 per common share and for an additional three years at an exercise price of $0.10. IBK will be paid a cash commission of 10% of the amount raised and 10% of the amount raised in broker warrants. Each broker warrant entitles the holder to purchase one common share and is exercisable for one year at $0.05 and for three additional years at $0.10 per share.
The terms of the private placement are according to the TSX Venture Exchange (the "Exchange") Extension and Modification of Temporary Relief from Certain Pricing Requirements Bulletin dated April 12, 2013 and are subject to Exchange approval.
Peat Resources Limited continues to pursue opportunities for its peat fuel pellets in specialty markets and as value-added industrial products such as activated carbon. Activated carbon products are used by large coal-burning power generation companies in the Unites States as an effective component of emission control systems to reduce mercury pollution and for specialty applications in the pharmaceutical, food and beverage industries.
As described in April by CEO Peter Telford, addressing an Ontario Power conference in Toronto, the Company takes the strategic position that bioenergy resources such as peat are most successful in circumstances calling specifically for environmental advantages conferred by the Company's unique wet harvesting process. Peat fuel produced by this method meets European Union criteria for sustainable bioenergy and becomes eligible for various financial incentives to European users of the product. This has raised interest in the Company's resources and operations in Newfoundland that are favourably situated for trans-Atlantic export. Discussions with one party are ongoing regarding the use of peat pellets as a bioenergy fuel for major power generation in Europe.
Dr. Telford also noted how local niche markets are another important opportunity for use of peat fuel and application of the Company's biomass fuel processing technology. These include, for example, remote communities and mining developments of northern Ontario that rely on expensive diesel fuel but which are frequently located close to extensive, accessible peat resources. Peat Resources Limited is currently in discussion with First Nation representatives for the purpose of establishing, in selected communities of northern Ontario, peat-fuelled combined heat-and-power systems of similar scale to the Company's small-scale production facility in Stephenville (Newfoundland).
Similar environmental and economic benefits of peat fuel pellets are part of several promising opportunities in China where, as previously reported, Peat Resources Limited sent a 20 tonne shipment of pellets for demonstration and marketing purposes and where sensitivity to environmental issues has increased.
Peat Resources Limited is a Toronto-based clean energy company that was formed to develop and produce a sustainable peat fuel.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.