AMG signs letter of intent with CZBC
Renewable energy firm AMG Bioenergy Resources Holdings has signed a letter of intent with China Zhejiang Biodiesel (CZBC) to acquire the eucalyptus and jatropha plantation assets, which it has developed in Guangdong province, southern China.
AMG will initially acquire the 145-hectare jatropha and the 330-hectare eucalyptus plantation assets for around CA$2.6 million (€1.85 million) with an objective to develop it into a 400-hectare plantation.
AMG believes that this acquisition will reduce the plantation development risk of the company when pursing its objectives, and allow for it to achieve operational revenues and cash flow in a shorter period of time.
Acquisition of the plantation assets will be financed via a private placement of shares of the company.
AMG will commence preliminary due diligence work shortly and expect to complete the same by 31 December this year before finalising terms and conditions with CZBC.
AMG will initially acquire the 145-hectare jatropha and the 330-hectare eucalyptus plantation assets for around CA$2.6 million (€1.85 million) with an objective to develop it into a 400-hectare plantation.
AMG believes that this acquisition will reduce the plantation development risk of the company when pursing its objectives, and allow for it to achieve operational revenues and cash flow in a shorter period of time.
Acquisition of the plantation assets will be financed via a private placement of shares of the company.
AMG will commence preliminary due diligence work shortly and expect to complete the same by 31 December this year before finalising terms and conditions with CZBC.
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