| CATEGORY: NEW ISSUES SECTOR: FOOD PRODUCERS |
GEM Biofuels debuts on AIM |
|
Fri 19 Oct 2007
|
LONDON (SHARECAST) - GEM BioFuels, set up to supply feedstock to the biodiesel market, has listed on London’s AIM market today and is currently trading happily ahead of its 60p issue price.
The group raised £3.5m from the placing of just over 5.8m shares to value the business at £16.6m. The money will be spent on establishing its Jatropha plantations in Madagascar.
Funds will also be put towards a crushing plant and cover working capital requirements to enable the firm to establish its crude oil production.
GEM, which has secured 50 year agreements giving exclusive rights over 452,500 hectares to establish plantations, has currently planted 13,300 hectares of Jatropha.
A further 50,000 hectares are expected to be planted between October this year and February 2008 and a total of 200,000 hectares being planted by 2010.
The company reckons production will be around 45,000 tonnes per annum (tpa) of crude Jatropha oil in 2009 rising to 210,000 tpa by 2014, as its trees mature.
|
|
| |
|
 |
Front Page Stories |
 |
|
