REG - Active Energy Group - Landmark Forestry Joint Venture in Canada <Origin Href="QuoteRef">AEGR.L</Origin>

Active EnergyAnnouncement

06/09/2014 18:31

For best results when printing this announcement, please click on the link
below:

http://pdf.reuters.com/Regnews/regnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20140718:nRSR7173Ma


RNS Number : 7173M
Active Energy Group PLC
18 July 2014 
 
Active Energy Group Plc
("Active Energy Group" or the "Group" or the "Company" or "AEG") 
 
Announces Landmark Forestry Joint Venture with 
 
Indigenous Canadian Métis Settlements 
 
Active 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. 
 
Highlights: 
 
·   The forests, located in Western Canada, are owned by three indigenous
aboriginal groups: the Alberta Métis Settlements of Peavine, Paddle Prairie
and East Prairie. 
 
·   The partners in the new venture include the three Métis Settlements, Grand
Chief Ronald M. Derrickson of British Columbia, and Active Energy Group. 
 
·   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. 
 
·   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. 
 
·   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. 
 
·   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. 
 
·   The forests are primarily composed of prime mature standing hardwood
(Aspen, Poplar) and softwood (Spruce, Pine, Fir) species.  AEG will aim, with
the active involvement of the Métis Settlements Board representatives, to
ensure that sub-lessees and other partners adhere to
internationally-recognised environmental and sustainability standards, and the
highest international forestry stewardship criteria. 
 
·   All commercial transactions that the joint venture may enter into will
include an obligation to provide local employment for Métis citizens, and a
commitment to contribute to corporate social responsibility programmes which
benefit Métis communities. 
 
·   This substantial agreement has been promoted and overseen throughout the
negotiation and agreement stages by Grand Chief Ronald M. Derrickson and Iner
Gauchier, Chairman of the Peavine Métis Settlement, with the support of Greg
Calliou and Gerald Cunningham, respectively Chairmen of the Paddle Prairie and
East Prairie Métis Settlements. 
 
·   To ensure fair and equitable participation for the indigenous groups in
the management of the joint venture, it has been unanimously agreed that Grand
Chief Derrickson will be appointed Chairman of the new company, and will be
joined on the Board by three representatives from Active Energy Group and one
representative from each of the three Métis Settlements that are party to the
agreement. 
 
·   Active Energy Group will make further announcements in due course as the
project progresses to establish the value of, and to commercialise, the
substantial forestry assets. 
 
Ronald M. Derrickson, Grand Chief of British Columbia and Chairman of RMD
Group, commented: 
 
"In AEG, the Métis Settlements have finally found a partner with the
experience, vision and international network to enable them to properly and
fairly commercialise their assets for the long-term benefit of their
communities.  I first became aware of Richard Spinks - Active Energy Group's
CEO - through his ground-breaking work with Landkom International in Ukraine,
where he successfully created a co-operative agricultural business that
transformed the lives of many thousands of private land owners. Richard and I
have been working together for the past five years to assemble a deal that
finally gives the Métis an equitable share in the economic development of
their forests, and I know that it will set the standards and terms for further
agreements with other Métis, First Nations and aboriginal groups across Canada
to enable them to develop and commercialise their assets in an equitable and
sustainable manner to bring long-term economic growth, employment and
stability to their communities and their peoples." 
 
Richard Spinks, CEO of Active Energy Group Plc, commented: 
 
"This exciting new venture is the result of many years of working closely with
Grand Chief Derrickson and theMétis leadership to structure an equitable
arrangement that works for all parties, commercialises the forestry assets in
a sustainable and environmentally-sensitive manner, and allows the Métis
communities to actively participate in and benefit from the proper development
of their lands and resources.  AEG are delighted to be partners in this
ground-breaking initiative, and my co-directors and I, two of whom will play a
key role in the new company strategy and operations, are confident that our
international timber industry and forestry management expertise and
connections will ensure its success for current and future generations." 
 
- ends - 
 
Media Enquiries: 
 
Canadian & North American Media                                               
       
(for enquiries on Friday 18 July 2014)                                        
                    Tel: +1 587 589 1936
                                                                              
                                                 TimR@novella-comms.com 
 
International Media
Novella Communications: Tim Robertson / Ben Heath                          
Tel: +44 20 3151 7008
                                                                              
                                                 TimR@novella-comms.com 
 
Enquiries: 
 
Active Energy Group Plc
Richard Spinks, Chief Executive Officer                                       
          richard.spinks@active-energy.com 
 
WH Ireland Ltd. (Nominated Adviser and Broker)           
Chris Fielding                                                                
                                     Tel: +44 20 7220 1666 
 
TO VIEW THE FULL PRESS RELEASE, PLEASE VISIT THE ACTIVE ENERGY GROUP WEBSITE
AT
www.active-energy.com 
 
This information is provided by RNS
The company news service from the London Stock Exchange