Biodiesel refiner Mission NewEnergy Ltd
(ASX:MBT) has entered into a five-year US$3.5 billion biofuels offtake agreement with oil refining giant Valero.
The agreement also gives Valero the opportunity to purchase up to 25% of Mission at 45 cents a share, representing a 61% premium to the current 30 day volume weighted average price.
Mission’s share price closed at 33 cents on December 8.
Under the agreement Mission will supply Valero with up to 200,000 tonnes of biodiesel a year which Valero has the right to double to 400,000 tonnes a year and extend the term by an additional five years.
The agreement represents gross revenue potential to Mission of over US$3.5 billion.
Mission NewEnergy posted a loss of $25.04 million for 2009.
