REG - Obtala Resources Ltd - Forestry Update <Origin Href="QuoteRef">OBT.L</Origin>

WoodboisAnnouncement

01/03/2016 07:11

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
+44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad) 
Ray Zimmerman
Richard Morrison
+44 (0)20 7060 2220
Brandon Hill Capital (Broker) 
Jonathan Evans
+44 (0)20 3463 5000

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