Neos Resources PLC Updates (2613C)

TIDMNEOS

RNS Number : 2613C

Neos Resources PLC

12 April 2013

NEOS Resources plc ("NEOS" or "the Company")

Update

Deferred Consideration Settlement

NEOS is pleased to announce that its wholly owned subsidiary, D1 Oils Trading Limited ("D1 Oils"), has today reached an agreement with BP International Limited ("BP International") to reduce the deferred consideration payable by D1 Oils to BP International in connection with the acquisition by D1 Oils of fifty per cent. of the issued share capital of D1-BP Fuel Crops Limited ("JV Shares") from BP International.

Pursuant to the share purchase agreement entered into between D1 Oils and BP International on 16 July 2009, D1 Oils had agreed to purchase the JV Shares for a maximum aggregate consideration of GBP1,100,000. GBP500,000 of this consideration was paid by D1 Oils in 2009 and the balance of GBP600,000 was payable by D1 Oils on a deferred basis ("Deferred Consideration") on or before 31 December 2014. BP International has agreed to accept GBP150,000 in full and final settlement of the obligation to pay the remainder of the Deferred Consideration, which D1 Oils has today paid to BP International.

Trading Update

The Company is also pleased to announce the successful sourcing and physical supply of 200 tonnes of Used Cooking Oil (UCO) to a global energy group for which NEOS has received a commission. The Company has also now contracted to supply a further 500 tonnes of UCO. This second contract involves the Company purchasing UCO as principle with an off take agreement from the same global energy group. The Board anticipates that the successful completion of this contract will lead to further supply contracts in increasing volumes and that the increased volumes should enable transportation of cargos in parcel carriers of vessels, thereby reducing logistics costs.

Furthermore the Company is pleased to announce that it has received indicative terms for a USD 2.7million trade finance facility from S.C.C.F. Structured Commodity and Corporate Finance S.A.R.L in order to fund the anticipated increased supply volumes.

 
                                     [phone] 
NEOS Resources plc                    5626 
Nicholas Myerson - Chief Executive 
 Officer 
 
                                     [phone] 
finnCap Ltd                           0500 
Stuart Andrews 
 Christopher Raggett 
 

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