Woodbois Ltd (LON:WBI) has increased its forestry interest in Gabon by 75% in a deal worth US$1.5mln.
After initially agreeing to acquire 56,000 hectares in Mimongo, close to its existing operations, it has opted to buy 71,000 hectares.
It will hand over an initial US$900,000 and US$150,000 per quarter from October.
Chairman and chief executive Paul Dolan said: "This additional hectarage, which is located within 100 kilometres of our manufacturing base in Mouila, will provide the increased levels of sustainably harvested timber required as additional production capacity comes online at our sawmill and veneer factory over the next eighteen months, in turn generating additional employment opportunities for the local community."
Woodbois now owns 166,000 hectares in Gabon. Of the new position, 56,000 hectares have been approved for harvesting.
The remaining 15,000 hectares will need to be approved as part of a parcel of 50,000 hectares or more.
“The company will seek to acquire further forest in due course to achieve this size and to support future expansion plans,” investors were told.