28th Aug 2014 12:38
LONDON (Alliance News) - Active Energy Group PLC Thursday said its forestry deal with three indigenous groups in Alberta, Canada is larger than originally envisaged.
On July 18, the AIM-listed supplier of biomass-for-energy fuel products said it had entered into a new joint venture to exclusively commercialise in excess of 100,000 hectares of mature forestry assets in Alberta. This was expected to yield more than 20 million cubic metres of commercial standing timber.
In an update Thursday, the company said the figure is now likely closer to 200,000 hectares. Active Energy is now carrying out extension sampling to assess the volume of standing timber involved.
The partners in the new venture include the three Métis Settlements which will has 45% stake, Grand Chief Ronald Derrickson of British Columbia who will have 10% interest, and Active Energy Group will hold the remaining 45% stake.
In exchange for equity interest in the joint-venture company, the Métis Settlements will grant exclusive rights over the assets and Active Energy will commit to commercialise the area.
Active Energy shares were untraded Thursday afternoon. It last traded at 2.55 pence.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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