Disposal of Investment

RNS Number : 2080U

Obtala Resources Limited

11 October 2010

 



Obtala Resources Limited

 ("Obtala" or "the Company") (AIM:OBT)

Disposal of Investment

The Board of Obtala Resources Limited the resources investment, development and production company, today announces that it has disposed of its entire holding of 22,652,261 shares in Firestone Diamonds plc. The gross consideration from the sale of this holding is £4,937,955 which allows Obtala to continue its strategy of mineral extraction, exploration and development, augmented with investment activities with a focus on global opportunities in the natural resources sector.

Firestone Diamonds plc recently completed the take-over of Kopane Diamond Developments plc ("Kopane"), where Obtala held its original investment. Since acquiring the initial interest in Kopane in March 2009 (for £1.75m) the Company has now realised a total profit of approximately £4.94m from the sale of its interest in Kopane. 

Frank Scolaro, Chairman of Obtala, commented: "The profit realised through the disposal of this investment secures Obtala's cash position and provides working capital for developing our portfolio of projects, including our lithium and agricultural subsidiary companies. This return on our original investment demonstrates our positive strategy of investing in undervalued resource assets. Our objective remains the same; to generate near term shareholder value from deliverable resources projects.  "

Contact:

Obtala Resources Limited
Simon Rollason - Managing Director Frank Scolaro - Chairman www.obtalaresources.com	[phone]
ZAI Corporate Finance Ltd
Ray Zimmerman/ Sarang Shah	[phone]
Threadneedle Communications
Laurence Read	[phone]

 

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