Syngas Limited (ASX:SYS) entered into a heads of agreement to acquire CEAL Ltd on January 24, 2014. In a related transaction, Syngas Limited (ASX:SYS) entered into a heads of agreement to acquire civil engineering business from Multiquip Aggregates Pty. Ltd on January 24, 2014.

Syngas will issue 22 million shares to shareholders of CEAL Ltd and Multiquip Aggregates Pty Ltd and the sum of AUD 5 million from the capital raising will be used to pay out existing liabilities and monies lent to the project. The transaction is conditional on all relevant government, regulatory and shareholder approvals being obtained. The deal is also conditional on capital raising of AUD 20 million with AUD 7.5 million to be raised at minimum, consolidation of share capital of Syngas from 581 million shares to 2.9 million shares and issuance of consideration shares.