CALGARY, ALBERTA--(Marketwire - Sept. 8, 2011) - AMG Bioenergy Resources Holdings Ltd. (the "Company") (TSX VENTURE:ABG), a Canadian publicly traded company, announces that it has incorporated AMG Bioenergy Plantations Co., Ltd., a wholly owned subsidiary corporation incorporated under the laws of the People's Republic of China (the "Subsidiary"). The Subsidiary was incorporated to facilitate the acquisition of a 133 hectare jatropha plantation and a 201 hectare eucalyptus plantation, and the associated land use rights, in the People's Republic of China (the "Transaction").
The Transaction was initially announced by the Company in its January 26, 2011 News Release. However, as a result of changes to the regulatory regime in the People's Republic of China, as it relates to the incorporation of Chinese companies by foreign entities, incorporation of the Subsidiary took longer than anticipated. Nevertheless, now that the Subsidiary has been incorporated, the Company intends to proceed with the Transaction by assigning the related Land Use Rights Transfer Agreement to the Subsidiary (the "Definitive Agreement").
The Company anticipates that the Definitive Agreement will be closed on or about October 21, 2011. Although the Definitive Agreement initially contemplated a June 30, 2011 closing date, the Company and China Zhejiang Biodiesel co, Ltd. (the vendor under the Definitive Agreement) agreed to postpone the closing date to give the Company the necessary time to complete the incorporation of the Subsidiary.
The Transaction is arm's length and if completed will constitute a "Fundamental Transaction" under the TSX Venture Exchange's (the "Exchange") Policy 5.3. As the Transaction is arm's length, shareholder approval will not be required.
About AMG Bioenergy Resources Holdings Ltd.
The Company has been active in research and development of bio-fuel feedstock and biodiesel conversion with the intent of developing a business producing jatropha as a bio-fuel feedstock in the People's Republic of China and other parts of Asia.
ON BEHALF OF THE BOARD
Lee Shoong Lim, Managing Director
This news release may contain forward-looking statements. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Such information is subject to known and unknown risks, uncertainties and other factors that could influence actual results or events and cause actual results or events to differ materially from those stated, anticipated or implied in the forward-looking information. Readers are cautioned not to place undue reliance on forward-looking information, as no assurances can be given as to future results, levels of activity or achievements.
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