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Obtala Resources receives first slug of cash from Global Timber

The balance of $300,000 is due to be paid by 1 June 2016.
Obtala Resources receives first slug of cash from Global Timber
The company secured around $3mln from three timber investors last month

Obtala Resources (LON:OBT), the Africa-focused agricultural and timber company, has received the initial payment of $600,000 from Global Timber Investment.

It is part of the cash injection by three specialist timber investors announced last month that will see the trio each take a minority stake in a holding company that holds the production rights for harvested timber from one of Obtala's concessions.

The balance of $300,000 is due to be paid by Global Timber by June 2016, giving the investor a 15% shareholding in Meradell, which holds the timber production off-take rights over a designated 20,000 hectare concession only.

As announced last month, Obtala still owns and maintains the timber concessions, which cover a total area of 314,965 hectares. In return for this investment, the investors will receive a 5% fixed return on their investment, payable biannually and a pro-rata share of any income.

The shares were little changed on the news.

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