Africa-focused timber and food firm Obtala Resources Ltd (LON:OBT) has expanded its sales agreement with Asia based trading company Basic Materials Ltd (BML) Ltd into its agricultural business.
It struck a joint venture with BML earlier this year over marketing and selling its timber products from Mozambique and now it has expanded this into its agri-business.
Chairman of Obtala Miles Pelham said: "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."
Now that it can provide consistent supply of export quality produce, Obtala is now focusing on its sales and distribution capability.
This agreement augments the fruit and vegetable off-take deal announced last November.
Read more on recent Obtala developments HERE.
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