British group Obtala Resources netted 650,000 pounds by issuing 4.37 million shares, and the cash will be used to expand its forestry and agricultural projects in Mozambique and Tanzania, the group said in a statement.
The group, which recently sold most of its stake in Bushveld Minerals for 13 million pounds, has no debt and, according to its chairman, Francesco Scolaro, the cash will allow the businesses to have an “attractive” profit margin.
In Mozambique, where the tree felling season has officially opened, Obtala Resources has started producing railway sleepers for an unidentified Mozambican company.
In 2011, the group announced it had been hired to provide Vale Moçambique with a total of 33,200 sleepers, and the contract had been guaranteed by the Montara Continental Corp, a company that is 75 percent owned by the group, and whose main business is exporting high quality wood.
In Tanzania the group recently bought a property where it plans to carry out a project involving horticultural products. (macauhub)