BRITISH COMPANY OBTALA RESOURCES RAISES 3.0 MILLION USD FOR MOZAMBICAN PROJECTS

Obtala Resources, a company based in the British Channel Islands, says it has raised three million US dollars for forestry projects in Mozambique.

The company said here over the weekened that three international timber investors had funded the projects in return for equity in the company and off-take rights.

Part of the funds will go to the construction of two kilns to dry timber. The company will also develop a new sales and distribution centre in the Mozambican capital, Maputo.

Obtala also announced that it would launch a social and community development fund focusing on providing labour, health and education programmes in Mozambique.

The three investors are Hong Kong-based Global Timber Investment Limited (with a 900,000 USD); George Miller, a private investor from the United States (1.16 million USD); and Basic Materials Limited, a company with offices in Hong Kong and Russia (900,000 dollars). Basic Materials Limited is to export timber to Asia and the Middle East.

According to Obtala Deputy Chairman Kevin Milne, the investment would allow the company to materially develop its forestry business in Mozambique. He added that the creation of the distribution centre in Maputo would provide direct access to local consumers on both a wholesale and retail basis.

Obtala’s concessions in Mozambique are mainly in the central province of Zambezia. They are operated under a forestry concession contract which strictly requires that only a restricted number of trees can be cut and that the timber must be processed within Mozambique.

Source: AIM