Active Energy Group PLC (AIM:AEG, OTCQB:ATGVF) announced it has signed non-binding heads of terms with UAE partners for a proposed joint venture in the United Arab Emirates.
"We see this joint venture as an important foundation in delivering our proposed 100MW UAE strategic plan," said chief executive Paul Elliott.
"By partnering with best-in-class operators, we can combine deep technical capability with established international sales reach, without placing undue demands on internal resources or central capital expenditure.
"The partners bring complementary strengths and are well aligned with Active Energy's strategy, and we believe this structure provides a scalable and disciplined framework for growth."
Active Energy said the JV will operate through a UAE-domiciled special purpose vehicle called Active Mining Group with a web domain for of activemining.com.
The heads of terms were signed with locally based Segments Cloud Hash and LC Group. Active Energy said Segments is a technical and ASIC crypto mining operator with significant operational experience in the sector. It said LC Group brings commercial, sales and marketing expertise and established international client relationships.
Under the proposed structure, Segments and LC Group would each hold a 20% equity interest. Active Energy would retain a 60% controlling shareholding. Active Energy said it will lead strategy and oversight. It said the JV is intended to support efficient utilisation and phased expansion of its UAE digital infrastructure capacity.
Abdul Hakeem, Segments chief executive, meanwhile, added: "This is a unique opportunity... AEG is a dynamic business with clear momentum in the digital infrastructure sector and access to ultra-low-cost energy.
"We are pleased to contribute our technical expertise and operational capacity to the partnership and look forward to supporting the scalable build-out of the platform, including progression toward the group's longer-term 100MW objectives."