Forest Concessions Applications Authorised

RNS Number : 9638J

Obtala Resources Limited

14 August 2012

 



14 August 2012

Obtala Resources Limited

("Obtala" or the "Company")

(AIM: OBT)

Montara Mozambique

Forest Concessions Applications Authorised by Ministry of Agriculture

Obtala Resources Limited (AIM:OBT), the natural resource investment and development company, is pleased to announce that it received notification yesterday from the Ministry of Agriculture in Maputo, Mozambique that its two outstanding forest concession applications have been authorised by the Minister of Agriculture.

Highlights:

·       Total land area authorised of 117,618 hectares

·       Concessions located within well-established forests of Cabo Delgado and Nampula Provinces

·       Management plans indicate annual combined cutting volumes for both concessions of 8,994 m³, based on eight tree species

·       Inventory studies on the two concessions indicates the presence of numerous species of exotic hardwoods, including African Blackwood, Kiaat and Panga-Panga Concessions located within 200km of port facilities

Chairman's comment

Francesco Scolaro, Chairman of Obtala, commented: "I am delighted to announce this significant update to our shareholders. The forestry business in Mozambique is rapidly developing into an exciting business opportunity and the authorisation by the Minister of Agriculture allows us to expand our corporate development plan; which is to build up a leading sustainable timber company in East Africa. As highlighted in a recent statement, the sleeper project is now profitable employing over 300 workers on site, processing of export timber is underway, and we have recently received an interest to produce furniture and other wooden products for the local market."

Obtala Resources Francesco Scolaro - Chairman Simon Rollason - Managing Director www.obtalaresources.com	[phone]
Macquarie (Nomad and Broker)
Steve Baldwin Nicholas Harland	[phone]

 

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