Forestry Update

RNS Number : 5454Q

Obtala Resources Limited

01 March 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 initial payment of US$600,000 from Global Timber Investment Limited as per the investment agreement announced on the 17 February 2016. The balance of US$300,000 is due to be paid by 01 June 2016.

The funds are part payment for a minority 15% shareholding in Meradell (1) Limited, which holds the timber production offtake rights over a designated 20,000 hectare concession only.

As per the 17 February 2016 announcement, three separate investors have agreed to acquire minority shareholding in three newly formed holding companies. 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 Richard Morrison	[phone]
Brandon Hill Capital  (Broker)      Jonathan Evans	[phone]

 

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