REGINA, SASKATCHEWAN -- (Marketwire) -- 07/12/10 -- Aura Bio Corp. ('Aura') (OTCBB: AUBC) is pleased to announce that the company has completed its due diligence assessment of the Agricultural Biodiesel project in Cross River State, Nigeria, and has entered into a formal agreement with Tolao Energy of Nigeria (the 'Vendor'). As part of the agreement, Aura has advanced 2 million common shares of the company to Tolao, as the first payment, pursuant to the terms of the Letter of Intent announced June 4, 2010.
Under the terms of the agreement, Aura can earn a 10% working interest in a proposed Agricultural Biodiesel project in Cross River State, Nigeria. The project will ultimately involve the use of 3000 hectares of arable land suitable for the purpose of Jatropha feedstock cultivation and bio-fuel production.
The agreement encompasses the development of a biodiesel plant with an initial annual production capacity of 37.5 million liters, with the intent of increasing annual production to over 70 million liters within the first 12 months of production. Using the initial capacity of 37.5 million liters, Aura calculates initial gross revenues to be in the range of $25 million USD per year. 'The fact that we would be able to source the raw materials directly, greatly increases the project's profitability, and ultimately shareholder return,' indicates Harry Lappa, president of Aura Bio Corp.
The formal agreement stipulates that a second payment will be made to the Vendor in the amount of $200,000 USD on or before August 23rd, 2010 and a final payment to the Vendor in the amount of $10,000,000 USD within 12 months after the first payment. Under the terms of the agreement, Aura will also be granted an additional 10% working interest in the project, if, within 12 months of the first payment, Aura pays the Vendor an additional $10,000,000 USD.
Harry Lappa, president of Aura Bio Corp. states, 'Aura Bio is extremely pleased to have finalized this formal agreement with Tolao Energy Nigeria on the development of this clean energy biodiesel project. We feel the focus of Aura Bio, and more specifically the development of this project, is perfectly in line with the increased global emphasis and demand for cleaner, sustainable alternative fuel sources.'
Aura Bio Corp. is a company focusing on developing and investing in clean energy projects. Further information on Aura Bio Corp. is available at www.aurabiocorp.com.
Except for the historical information contained herein, the matters discussed in this press release are forward-looking statements. Actual results may differ materially from those described in forward-looking statements and are subject to risks and uncertainties. See Aura Bio Corp.'s filings with the Securities and Exchange Commission which identify specific factors that may cause actual results or events to differ materially from those described in the forward-looking statements. We seek safe harbor.