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.
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.
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.
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 the Métis 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."
Active Energy Group Plc is international supplier of industrial wood chip, timber products and forestry management services.
