Business
Landmark Forestry Joint Venture in Canada
Landmark Forestry Joint Venture in Canada.
About this update from Active Energy Group Plc
[{"type":"text","content":"\n \nRNS Number : 7173M Active Energy Group PLC 18 July 2014 \n \n\n \n \nActive Energy Group Plc(\"Active Energy Group\" or the \"Group\" or the \"Company\" or \"AEG\")\nAnnounces Landmark Forestry Joint Venture with \nIndigenous Canadian Métis Settlements\n \nActive Energy Group Plc (AIM:AEG), the London Stock Exchange AIM-listed international supplier of industrial wood chip, timber products and forestry management services, announces that it has entered into an important new joint venture agreement to exclusively commercialise in excess of 100,000 hectares (c.250,000 acres) of mature forestry assets in Alberta, Western Canada, which are expected to yield more than 20 million m3 of commercial standing timber.\nHighlights:\n· The forests, located in Western Canada, are owned by three indigenous aboriginal groups: the Alberta Métis Settlements of Peavine, Paddle Prairie and East Prairie.\n· The partners in the new venture include the three Métis Settlements, Grand Chief Ronald M. Derrickson of British Columbia, and Active Energy Group. \n· The Métis Settlements and Active Energy Group will each hold a 45% equity interest in the joint venture company, which will be incorporated in Canada and headquartered in Kelowna, British Columbia, with the remaining equity to be held by Grand Chief Ronald M. Derrickson. \n· The new venture represents a landmark arrangement for the Métis: it provides a mechanism for their rights and assets to be independently assessed and valued, and for them to receive a fair and equitable share of the proceeds from the commercialisation of those rights and assets over the long-term.\n· Under the agreement, the Métis Settlements will, in exchange for their equity interest in the joint venture company, grant exclusive rights over all their forestry assets to the joint venture company; and AEG will commit to commercialise those forestry assets in exchange for its equity stake.\n· The joint venture company will be allowed to enter into sub-leases with third parties for periods of approximately 200 years to facilitate long-term economic development for the Métis peoples, in collaboration with international investors and commercial partners. \n· The forests are primarily composed of prime matur...