Obtala Resources has established separate agreements with three international investors to secure investment of US$3 million for forestry projects in Mozambique, the company said in a statement released Wednesday.
The agreements guarantee the three investors, which specialise in wood, minority interests in special purpose vehicles set up by the Guernsey-based company and economic rights over a specific area of forest concessions in Mozambique.
The amount raised, of which Obtala has received US$1.2 million and the remainder should be paid out by 30 June, will build two furnaces to improve the quality of the wood and build a new sales and distribution network in Maputo, the capital of Mozambique.
The forestry business in Mozambique is currently held by Argento Continental Corporation, a subsidiary that is 100 percent controlled by the Montara Continental Corporation (Seychelles), a 75 percent subsidiary of Obtala Resources.
The statement added that Global Timber Management, a company based in Hong Kong, will invest US$900,000, George Miller, a private investor based in the United States will invest 1.61 million Canadian dollars and Basic Materials, a company with offices in Hong Kong and Russia, will invest US$900,000. (macauhub/MZ)