Obtala Resources Limited Agricultural Business Update (7453D)

TIDMOBT

RNS Number : 7453D

Obtala Resources Limited

12 July 2016

12 July 2016

Obtala Resources Limited

("Obtala", the "Group" or the "Company")

(AIM: OBT)

Agricultural Business Update

Obtala Resources Limited (AIM:OBT), the African focused agricultural and forestry business, today announces a Sales Agency Agreement ("Agreement")_for its agricultural business.

Earlier this year the Company entered into a Joint Venture Agreement with an Asia based trading company; Basic Materials Limited ("BML") to market and sell our timber products out of Mozambique. Due to the success of this forestry partnership both parties have entered into the additional Agreement in respect of the Company's agricultural produce. With all the necessary certifications secured and an improved ability to provide consistent supply of export quality produce, the building out of the sales and distribution capability is an area of significant focus for the company.

This Agreement supplements our current fruit and vegetable off-take agreement announced 6(th) November 2015. BML has strong business links in Asia where it will start to market our produce.

Miles Pelham, Chairman of Obtala commented, "This agreement marks an exciting development for our agriculture business. We have invested significantly in recent years to ensure that all required certifications were secured and that the practices, processes and production facilities to deliver the highest quality produce for export markets were established. Our successful forestry partnership with BML has proved their ability to access export markets and gives us confidence to expand that relationship into our agricultural business. We expect this relationship to accelerate the development our agriculture business, as it doing with our forestry assets. The existing partnership with an international trading company remains in place and we continue to work with them to establish customers in the European and the Middle Eastern markets, and we continue to assess the viability of establishing of a banana plantation in partnership with them."

 
 Obtala Resources 
  Miles Pelham - Chairman 
  Paul Dolan - Chief Executive 
  Officer                         [phone] 
  www.obtalaresources.com          1940 
 ZAI Corporate Finance Limited 
  (Nomad) 
  Peter Trevelyan-Clark 
  Jamie Spotswood                 [phone] 
  John Tracey                      2220 
 Brandon Hill Capital (Broker)    [phone] 
  Jonathan Evans                   5000 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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July 12, 2016 02:00 ET (06:00 GMT)