The board of TXO Plc ("TXO" or "the Company") is pleased to announce it has completed a further investment in the Grand Bahama Group Limited ("GBG" or "the Group"). Further to the Extension of Option with GBG announced on 13 February 2012, the Company has purchased Forty (40) Ordinary Shares at a purchase price of Two Hundred Thousand Pounds Sterling (£200,000) being settled through £100,000 in cash and £100,000 in Ordinary Shares in the capital of TXO plc at an issue price of 0.75p per Ordinary Share. Consequentially, 13,333,333 Ordinary Shares have been issued and allotted to GBG. This represents a further 4.0% shareholding in GBG which takes the number of ordinary shares held by TXO to 183 and a shareholding of 18.3% in the Group. The investment will help further the development plans for the Freeport port facility.
Freeport, Grand Bahamas is in a free trade zone and 65 miles off the coast of Florida. It is strategically placed for ships on transatlantic crossings and those en route to the Panama Canal, together with Caribbean and US Eastern Seaboard trade. With the harbour having a minimum depth of 45 feet, the Freeport container port is currently the deepest container terminal in the region, with substantial shipping traffic providing the opportunity for GBG to fulfil a hitherto largely unmet need.
GBG will initially provide ships with BP Castrol branded marine lubricants directly through its exclusive distributor agreement. GBG proposes, subject to additional funding, to establish its own modern facilities to offer ships services whereby GBG offloads their waste oils and oily sludge. GBG then plans to provide limited physical processing of these materials and for their disposal. In due course GBG plans to provide further processing into fuel and other oils through establishing a waste oil and hydrocarbon recovery facility nearby. It is expected that GBG can supply re-processed fuels at a considerable cost saving to more conventional fuels. GBG also hopes to be able to supply these locally to the large users of fuel based on the island, with a view to helping the economic viability of the island as a whole. In addition, the subtropical climate is the ideal climate for hydrocarbon recovery and GBG's proposed port side location will enable it to offer its services to the adjoining Shipyard, Oil Terminal and Container Ports that are also going through an unparalleled expansion program.
As part of its plans for developing the site, GBG is preparing an Environmental Impact Study. Once complete, GBG will announce its plan to commence the construction of the 3.5 acre quayside development site, subject to additional funding. GBG is committed to creating and supplying safe and environmentally friendly re-refined hydrocarbons.
GBG is also pleased to announce it has recently entered into a Strategic Partnership with Paul Waine, to assist in the design and construction of its new waste oil and hydrocarbon recovery facility in Freeport. Based in the UK, Paul Waine is Managing Director of RE:Group Ltd, operating a major, dedicated MARPOL reception facility and a purpose-designed oil and aqueous treatment plant in the UK. Paul has over 20 years experience in the field of waste oil and hydrocarbon recovery. GBG are delighted that Paul Waine has decided to make an investment in TXO as announced on 30 March 2012.
GBG is working closely with the Grand Bahama Port Authority ("the GBPA") whose expert guidance and assistance has been invaluable and is now also in early stage feasibility discussions with the GBPA with a view to applying for further licences to operate different types of 'waste to energy' plants.
Tim Baldwin, Chairman of TXO commented, "The board is very excited about the commercial plans for GBG in the Bahamas and considers the further investment into GBG to be in TXO's shareholders' interests. We are also pleased with the relationship with Paul, as it gives a further endorsement of GBG's development plans. Further announcements on the development of the port facility will be forthcoming as appropriate."
For further information, please contact:
Tim Baldwin, Chairman +44 (0) 207 518 4300
Beaumont Cornish Limited
Roland Cornish and James Biddle +44 (0) 20 7628 3396
This information is provided by RNS
The company news service from the London Stock Exchange