USA Synthetic Fuel Corp. Receives Significant Equity & Debt Investments, Purchases BOE Energy Asset, & Continues Progress Tow...
September 24 2012 - 5:34PM
Business Wire
USA Synthetic Fuel Corporation (OTCQB:USFC) (“USASF” or “the
Company”) announced today that it has received $35 million in debt
financing from Third Eye Capital, a leading special situations
investor based in Toronto, Canada with established expertise in
resource lending and other complex assets. In addition, Global
Energy, Inc. (“Global Energy”), having launched USASF in 2010,
purchased 1.1 million shares of common stock of the Company for $11
million.
The Company used some of the proceeds of the equity and debt
investments to purchase a BOE (barrel of oil equivalent) Energy
asset consisting of approximately 50 million tons of Illinois Basin
coal located in Indiana. Consideration for the transaction was $50
million, consisting of $25 million in cash and $25 million in
common stock of the Company (2.5 million shares). The purchased
energy asset has an estimated energy equivalent of 200 million
barrels of oil, according to the Company, and represents a 50 year
fuel supply for USASF’s subsidiary, Lima Energy Company (“Lima
Energy”), which is developing and constructing an Ultra Clean Btu
Converter in Lima, Ohio. This facility will be designed to enable
solid hydrocarbon resources, such as coal, petroleum coke, and
renewables, to be transformed into lower cost synthetic fuel
products, such as ultra clean synthetic crude, diesel, jet,
gasoline, and synthetic natural gas. The balance of the proceeds
from the equity and debt investments will be used to purchase land
for the Lima Energy project, continue site work, and for working
capital and general corporate purposes.
USASF’s goal is to develop and construct Ultra Clean Btu
Converters in several U.S. locations within the next ten years,
utilizing solid hydrocarbon resources such as those acquired from
Global Energy. The Company believes that its Lima Energy project is
one of the most fully developed gasification projects in the United
States.
USASF President and CEO Dr. Steven C. Vick commented, “It makes
sense that capital for innovative environmentally sound energy
technology development would come from Canada, where decades of
success with alternative energy have built a national energy
treasure. Now USA Synthetic Fuel Corporation is closer to bringing
its energy technology innovation to America’s top natural energy
resource with the deployment of Ultra Clean Btu Converters across
the USA. Lima Energy, based in Lima, Ohio, will lead the charge
with the production of low cost clean energy products.”
Arif N. Bhalwani, Managing Director of Third Eye Capital
reiterated his firm’s support of the Company: “USA Synthetic Fuel
Corporation has the critical assets and technical know-how
necessary to develop low-cost clean energy products that can be
commercially viable. Our innovative investment allows the Company
the time and resources to raise adequate public and private finance
for its current Lima Energy project, one of the most advanced
projects of its kind.”
About USA Synthetic Fuel
Corporation
USA Synthetic Fuel Corporation (OTCQB:USFC) is an environmental
energy technology company focused on building ultra clean btu
converters designed to enable America’s solid hydrocarbon resources
to be transformed into low cost synthetic fuel products:
transportation fuel (diesel, jet, gasoline), pipeline quality
synthetic natural gas (SNG), hydrogen, and power. USA Synthetic
Fuel’s goal is to deliver top environmental, economic, and social
performance. The Company’s leading Btu Converters are in
development and/or construction and are designed to produce 100,000
BOE (barrels of oil equivalent) per day of low cost synthetic fuel.
The Company has established the long term business objective of
manufacturing and delivering 2 million BOE/day of low cost
synthetic fuel in the USA by 2030. The Company owns or controls 1.2
Billion BOE in solid hydrocarbon energy assets.
About Third Eye Capital
Third Eye Capital is a leading special situations investor that
provides innovative financing to promising companies that are often
misunderstood or in out-of-favor industries. Through extensive due
diligence and rigorous analysis, the firm has a long track record
of successfully identifying companies with compelling stories and
valuable assets that other investors ignore or lack the expertise
or willingness to analyze. Third Eye Capital has committed more
than $500 Million to private financing transactions across a wide
array of industries including energy, alternative energy, mining,
technology, media, healthcare, construction services, and
financials. The firm was founded in 2005 by renowned entrepreneurs
and private investors Dr. David G. Alexander and Arif N. Bhalwani,
who have led Third Eye Capital to consistent investment
outperformance. For more information, contact Jonathan Norris, Vice
President at 416-601-9940.
Forward-Looking Statements
Statements that are not descriptions of historical facts are
forward-looking statements. Reference is made in particular to the
descriptions of our plans and objectives and other forward-looking
terminology such as “may”, “expects”, “believes”, “anticipates”,
“intends”, or similar terms, or variations. Forward-looking
statements are based on management’s current beliefs, opinions, and
expectations. Actual results could differ materially from those
currently anticipated due to a number of factors. Additional
information on potential factors that could affect our results and
other risks and uncertainties are detailed in the company’s
periodic reports.