BioEnergy Africa raises £8.6 million
Article Date: Sep 02 2008A company focused on the production of ethanol from sugar cane in southern Africa has listed on AIM. BioEnergy Africa raised £8.6 million through a placing at 12.5p, representing 20.7 per cent of its enlarged share capital.
The funds will be used to develop BioEnergy’s first project in Mozambique and pursue similar opportunities elsewhere in the region. The Mozambique project, operated through subsidiary ProCana, is expected to reach full capacity by 2015 producing 1.2 million litres of ethanol a day.
Chairman Phil Edmonds, who also chairs AIM-listed Central African Mining and Exploration Company (CAMEC), says that the market for ethanol is growing rapidly.
He adds that the company will adhere to ‘a strong sustainable policy that ensures ecological development is maintained in tandem with creating employment for local communities’.
The other directors are South Africa-born Corne Holtzhausen, who is based in Mozambique, and Andrew Groves, who has helped bring several natural resources start-ups to AIM including African Platinum and CAMEC.
BioEnergy, which has a market capitalisation of £41.5 million at its placing price, is in the process of recruiting a chief executive officer. The company’s finance function is currently provided by CAMEC.
