LONDON (Alliance News) - Active Energy Group PLC on Monday confirmed that it has been formally issued two timber permits in Canada, putting an end to a week of confusion over the grant of the permits.
Shares in the biomass-based renewable energy company resumed trading on London's AIM market following the confirmation, soaring 31% to 1.61 pence each.
Active Energy said subsidiary Timberlands International, through its local operating company Timberlands International (Newfoundland & Labrador) Inc, was formally issued two five-year commercial timber permits for forestry management areas 17 and 18 by the Ministry of Fisheries & Land Resources of the province of Newfoundland & Labrador.
The permits were issued with a five-year revolving renewal facility relating to a total annual allowable cut of 100,000 cubic metres per annum, which equates to 500,000 cubic metres over five years.
According to the company, the Fisheries & Land Resources had approval to grant the permits on November 16, but, at that time, unit Timberlands Newfoundland had not been granted the permits as they were still subject to the formal acceptance by Timberlands Newfoundland of certain standard conditions. The standard conditions to the permits were subsequently agreed by Active Energy last Friday, it said.
"The board of Active Energy is delighted with this outcome, and we are looking forward to working with the ministry in Newfoundland. Further announcements will be made as appropriate," Active Energy Chief Executive Officer Michael Rowan said.
Last week, a local Newfoundland-based newspaper reported that the company had not been granted the permits.
The Newfoundland Fisheries & Land Resources minister had denied approving two five-year commercial timber permits for Active Energy, stating that there may have been confusion by the London-listed company, the Northern Pen newspaper reported on Thursday last week.
Active Energy (AEG)