Forestry Update

RNS Number : 2601Z

Obtala Resources Limited

31 May 2016

 

31 May 2016

Obtala Resources Limited

("Obtala", the "Group" or the "Company")

(AIM: OBT)

Forestry Update

Obtala Resources Limited (AIM:OBT), the African focused agricultural and timber company, announces today that it has received the second and final payment of US$300,000 from Global Timber Investment Limited as per the investment agreement announced on the 17 February 2016.

As per the 17 February 2016 announcement, three separate investors have now acquired minority shareholdings of less than 20 per cent. in three newly formed holding companies for a total investment of c. US$3 million all of which has now been received. Each holding company holds the production rights for harvested timber from one of the Company's concessions. Obtala, through its subsidiary companies, still owns and maintains the timber concessions, which cover a total area of 314,965 hectares. In return for this investment, the investors will receive a 5% fixed return on their investment, payable biannually and a pro-rata share of any income.

Obtala Resources Kevin Milne - Deputy Chairman Simon Rollason - Managing Director www.obtalaresources.com	[phone]
ZAI Corporate Finance Limited (Nomad)                 Ray Zimmerman/John Treacy/Jamie Spotswood	[phone]
Brandon Hill Capital  (Broker)      Jonathan Evans	[phone]

 

END

 

 

MSCVELBLQEFXBBD