Active Energy owns 45% of the venture, KAQUO, alongside three Canadian aboriginal peoples (Metis Settlements).
Shares in the biomass group had soared yesterday when it announced three bids had been by KAQUO to commercialise 108,000 hectares of forest in Alberta, Canada.
It was the best performer on the London stock exchange yesterday but is the hardest hit today, after it confirmed that the minister, Jim Prentice, who is also the Premier of Alberta, had been investigating the procedures followed by the Metis Settlements when KAQUO was set up since November.
Active Energy said it “was at all times and continues to be fully appraised of this on-going process, and has been and continues to be fully satisfied as to the legal and regulatory processes followed by the three Métis Settlements.”
It added it remained confident that its partners had at no time acted inappropriately in any way and does not expect that the findings of the investigation will be adversely prejudicial to KAQUO's interests.
Richard Spinks, Active Energy’s chief executive, said Prentice, in his role as aboriginal affairs minister, had commented that the investigation into the Métis procedures was to "clear the air".
"It should further be noted that AEG and KAQUO welcome this investigation, and understand that there are procedures which the Minister is forced to follow regardless of the substance of any written complaint which he may receive.”
“We fully endorse the Premier's transparent and independent approach to this matter, which bodes well for us as a public company investing into Alberta."
Active Energy shares fell 49% to 4.8p.