Obtala Resources Limited Timber Update (7555H)
December 02 2015 - 7:54AM
UK Regulatory
TIDMOBT
RNS Number : 7555H
Obtala Resources Limited
02 December 2015
2 December 2015
Obtala Resources Limited
("Obtala", the "Group" or the "Company")
(AIM: OBT)
Timber Update
The Board of Obtala notes and welcomes the recent statement from
the Mozambican Government, which has approved a decree suspending
for the next two years the authorization of any new request for
logging areas under the regime of "simple licences". The measure is
intended to safeguard the country's forests, which have come under
intense pressure from logging, to such an extent that the survival
of some plant species is threatened.
Under Mozambican law, there are two forms of forestry
exploitation licences. One is the "simple licence" under which the
operators cut down the trees, and are not obliged to process any of
the timber. The second is the "forestry concession contract", which
involves larger areas, and under which the companies concerned
operate within strict permitted cut allowances and are obliged to
process timber inside Mozambique. The government suspension does
not affect the concession contracts currently held by the Company
as all of the timber rights are held under the "forestry concession
contract".
The Company continues with the previously stated intent to
maximise value of the timber assets through a process of
re-structuring.
Kevin Milne, Executive Deputy Chairman of Obtala, commented, "We
have received a number of shareholder enquires regarding this
subject and welcome the opportunity to clarify the position. We
applaud the Government of Mozambique in taking this very sensible
measure to ensure the protection of the forests and safe-guarding
the long term security of the timber sector within the country. We
continue to operate in a responsible, sustainable manner in
accordance with the strict conditions of our forestry concession
contracts and laws of Mozambique and look forward to growing this
exciting business opportunity. The process of re-structuring the
timber business is on-going and once completed will allow the
timber business to continue creating employment and economic growth
within the regions where we operate"
Obtala Resources
Kevin Milne - Executive Deputy
Chairman
Simon Rollason - Managing Director +44 (0)20 7099
www.obtalaresources.com 1940
ZAI Corporate Finance Limited
(Nomad)
Ray Zimmerman +44 (0)20 7060
Richard Morrison 2220
Brandon Hill Capital (Broker) +44 (0)20 3463
Jonathan Evans 5000
This information is provided by RNS
The company news service from the London Stock Exchange
END
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