AMG Bioenergy signs letter of intent to buy eucalyptus, jatropha plantations in Guangdong province, China, from China Zhejiang Biodiesel for C$2.6M, plans to expand farms to grow jatropha for biodiesel
November 4, 2010
– AMG Bioenergy Resources Holdings Ltd (the "Company") (TSX VENTURE:ABG) announces that it has just signed a Letter of Intent with China Zhejiang Biodiesel Co, Ltd ("CZBC") to acquire the Eucalyptus and Jatropha Plantation assets that CZBC has developed in Guangdong province, Southern China. The Company will initially acquire the abovementioned Jatropha and Eucalyptus Plantation assets for an amount up to CAD2.6 Million, approximately 145 hectares and 330 hectares respectively in size, and subsequently, in line with its stated business objective, further develop it into a 400 hectare plantation. The Eucalytus Plantation asset, located within the same area of the Jatropha Plantation asset and being established source of raw material for the renewable forestry resource sector, has been identified by the Company as another source of operational revenue and cashflow.
The Company believes the abovementioned acquisition of the Jatropha and Eucalyptus Plantation assets will reduce the plantation development risk of the Company when pursuing its stated business objectives, and allow the Company to achieve operational revenues and cashflow in a shorter period of time. The Company intends that the acquisition of the Plantation assets be financed via a private placement of shares of the Company.
AMG Bioenergy Resources Holdings Ltd will commence preliminary due diligence work shortly and expects to complete the same by 31 December 2010 before finalizing terms and conditions with CZBC.
About AMG Bioenergy Resources Holdings Ltd ("AMG/ the Company"):
AMG, formerly Blandings Capital Limited is a public company listed on the TSX Venture Exchange. The Company, through its operating subsidiary AMG, is an emerging renewable energy Company. The Company is currently developing a jatropha feedstock plantation in China to produce crude jatropha oil for conversion into biodiesel. The Company's business will involve managing the preparation of the land, the plantation of seedlings, the maintenance of the plantation, the harvesting of jatropha and the extraction of crude jatropha oil from the seeds harvested.