Pure Biofuels Corporation announced the closing of a $30 million round of private financing consisting of a $10 million convertible note and a $20 million secured credit facility.
Pure plans to use the funds to complete the construction of its primary 52.5 million gallon per year biodiesel production facility at the Port of Callao in Lima, Peru. The company also plans to complete the acquisition of Interpacific Oil and the expansion of that facility from its current 7 million gallons per year to 10 million gallons per year.
The annual capacity for the combined operation is expected to exceed 62 million gallons per year by mid 2008, making Pure one of the largest biodiesel producers in South America.
In addition, these funds will be used to finance feasibility studies that are underway in support of Pure Biofuel’s anticipated expansion into Argentina as well as its vertical integration strategy where the company will produce 100% of its own feedstock from plantations in Peru.
The feedstock studies are focusing on the development of palm, jatropha, and canola plantations. Pure has secured 60,000 hectares for plantation development in central Peru and has plans for additional expansion.