29th Apr 2016 08:50
LONDON (Alliance News) - Obtala Resources Ltd said Friday it has received the full settlement of USD900,000 from Basic Materials Ltd, in payment for a minority 17.5% shareholding in its forestry concessions.
Obtala's timber operations lie in Mozambique. It holds a 75% stake in its subsidiary forestry business Montara Continental Corp, which holds one of the largest concession areas in the northern part of the country harvesting timber from 270,000 hectares located over three areas.
In February, Obtala said three independent investors agreed to inject a combined USD3.0 million into its forestry division in return for minority equity interests in the company's forest concessions in Mozambique. The investors also receive certain off-take rights under the deal.
On Friday, Obtala said it had received the full settlement of USD900,000 from one of the investors, Basic Minerals, a company based in Hong Kong and Russia. The funds were in return for a 17.5% stake in the special purpose vehicle and the economic rights of up to 3,500 hectares.
The payment was received in two tranches of USD600,000, expected by April 30, and USD300,000 due by June 30.
Shares in Obtala were up 2.4% at 8.19 pence on Friday.
By Hannah Boland; [email protected]; @Hannaheboland
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