Global Timber Investment Limited, a company based in Hong Kong, made the initial payment of USD600,000 on an investment of $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 as economic 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 $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 $900,000. MDT/Macauhub
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