Leaf Resources (ASX:LER) has received a Letter of Intent from Formosa Plastics Group for offtake of 300,000 tonnes per annum of premium wood pellets.
Leaf Resources says the deal is for an initial period of three years, sourced from its proposed wood pellet production facility to be constructed in Rotorua, New Zealand.
It also says construction of the initial pine chemicals plant is expected to commence in Q1 2023 and targeted to be operational by Q4 2023.
Leaf Resources also announced a private placement to Formosa Group Australia and Formosa Technologies to raise $5.35M from the issue of about 445.5M new shares at $0.012 per share, subject to shareholder approval.