AMG acquires CZBC’s plantations

Renewable energy firm AMG Bioenergy Resources Holdings has signed a letter of intent with China Zhejiang Biodiesel (CZBC) to acquire its eucalyptus and jatropha plantation assets that CZBC developed in Guangdong province, Southern China. AMG will initially acquire the assets for around €1.85 million (US$2.64 million), with an objective to develop it into a 400-hectare plantation. AMG believes this acquisition will reduce the company’s plantation development risk, allowing it to achieve operational revenues and cash flow within a shorter time frame. Acquisition of the plantation assets will be financed via a private placement of shares. (November 5, 2010)