Hong Kong company pays first installment of timber business in Mozambique

2 March 2016

Global Timber Investment Limited, a company based in Hong Kong, made the initial payment of US$600,000 on an investment of US$900,000 to be paid by 1 June 2016, said Obtala Resources Limited.

This investment will give the Hong Kong company a minority stake of 15 percent in Meradell (1) Limited, one of three special purpose companies established by Obtala Resources, a company based in Guernsey, as well aseconomic rights over an area of ​​20,000 hectares of forest concessions in Mozambique.

Last February, Obtala Resources announced it had established separate agreements with three international investors to secure capital of US$3 million to be invested in forestry projects in Mozambique.

These agreements gave the investing companies minority stakes of 15 percent in one of three special purpose companies – Meradell (1), Meradell (2) and Meradell (3) – and economic rights on a specific area of ​​forest concessions in Mozambique.

The control of these concessions, which cover an area of ​​314,965 hectares, remains in the hands of Obtala Resources through its subsidiaries.

The forestry business in Mozambique is currently held by Argento Continental Corporation, a subsidiary 100 percent controlled by the Montara Continental Corporation (Seychelles), a subsidiary owned 75 percent by Obtala Resources.

In addition to Global Timber Management, 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)