- AEG and the Canadian Province of Newfoundland and Labrador converge on 1.2 mn ha of forest land
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AEG and the Canadian Province of Newfoundland and Labrador converge on 1.2 mn ha of forest land
Active Energy Group plc ("Active Energy", "AEG" or the "Company") has entered into an agreement in principle with the Province of Newfoundland and Labrador, Canada (the "Province"), which, after finalization, should provide the company and its affiliates Timberlands International plc ('Timberlands') with a Crown timber license and forest management agreement relating to two Forest Management Districts covering 1.2 mn hectares, according to AEG’s statement on the London Stock Exchange on May 22, 2017. The forest management agreement supposes the provision of harvesting and utilization of up to 140 thousands solid cubic meters of wood annually from the Forestry Management Districts 17 and 18 with the Province for a period of up to 20 years. The forest land area implied by the project is located on the Northern Peninsula of the Province, proximate to ocean port facilities with direct access for shipping routes to Europe. In the meantime, the parties are evaluating other collaborative opportunities for Timberlands and another AEG’s affiliate, Advances Biomass Solutions plc, concerning timber processing and the commercialization of the CoalSwitch product. Namely, Timberlands is developing partnerships with existing companies engaged in forestry operations and saw milling activities in the Northern Peninsula and surrounding areas, offering to cooperate with them on further timber related operations and fiber exchanges. The Agreement is in line with Active Energy's strategy to commercialize timberland operations through its newly incorporated affiliate, Timberlands. 'The proposed agreement with the Province of Newfoundland and Labrador represents an important step in the overall strategy for Timberlands in achieving a new and significant partnership in Canada… We believe this Agreement can provide significant benefits to all parties and I look forward to providing AEG's shareholders with further updates as we finalize the Agreement in the coming weeks," Richard Spinks, Chief Executive Officer of Active Energy says
The news is POSITIVE showing Active Energy to make decisive advances in its global strategic positioning, gaining access to a strong resource base, while securing public institutional support to its business in North America. We see the current agreement to result in a strengthening synergy in the company’s business segments, and especially justifying the shift from the Ukrainian market announced on early May 2017.