17th Sep 2015 14:50
LONDON (Alliance News) - Wood-chip supplier Active Energy Group PLC on Thursday said it has been advised by the Métis settlement partners involved in the KAQUO joint venture in Canada that they have received the findings from the Alberta Ministry of Aboriginal Relations probe into how the settlements handled entering into the joint venture.
The settlements have told Active Energy that the ministry has outlined certain conditions which will have to be fulfilled, after which the joint venture will be able to proceed.
Active Energy said it is talking to its partners about those conditions, which it did not specify but which it said it does not think will be material, in order to come to terms on a strategy which will allow forestry operations by the joint venture to kick off by January 2016.
Back in January, Active Energy said the Minister of Aboriginal Affairs in Canada opened an investigation in November 2014 into allegations about an economic development agreement between three northern Alberta Métis settlements and the KAQUO forestry joint venture company.
In July 2014, the Peavine, Paddle Prairie and East Prairie Métis settlements agreed with Active Energy to form Kaquo Forestry and Natural Resources Development Corp to commercialise timber and other natural resources on 250,000 hectares of Métis land.
Active Energy had initially addressed the issue following a report in local newspaper The Edmonton Journal, which said "more than one" formal complaint had been made by Métis settlement members concerning the deal.
The complaints allege three settlement councils breached the Métis Settlements Act and council policy by signing the joint-venture agreement last year with Active Energy. Their allegations focus on issues such as failing to consult the membership and the agreement's duration, according to the report in The Edmonton Journal.
Shares in Active Energy were up 8.1% to 6.00 pence on Thursday afternoon.
By Sam Unsted; [email protected]; @SamUAtAlliance
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
Active Energy