REG - Obtala Resources Ltd - Forestry Update <Origin Href="QuoteRef">OBT.L</Origin>
RNS Number : 7495WObtala Resources Limited29 April 201629 April 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 that it has received full settlement of US$900,000 from Basic Materials Limited as per the investment agreement announced on the 17 February 2016. The payment was received in two tranches, the initial payment of US$600,000 expected on 30th April 2016 and the balance of US$300,000 due by 30 June 2016.
The funds are part payment for a minority 17.5% shareholding in Meradell Inc, 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+44 (0)20 7099 1940
ZAI Corporate Finance Limited (Nomad)
Ray Zimmerman
John Treacy
Jamie Spotswood
+44 (0)20 7060 2220
Brandon Hill Capital (Broker)
Jonathan Evans
+44 (0)20 3463 5000
This information is provided by RNSThe company news service from the London Stock ExchangeENDUPDLVLLLQZFBBBK
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