Operational Update

RNS Number : 6396I

Obtala Resources Limited

27 July 2012

 



27 July 2012

Obtala Resources Limited

("Obtala" or the "Company")

(AIM: OBT)

Future Crop Sales Update, Tanzania

Obtala Resources Limited (AIM:OBT), the natural resource investment and development company, is pleased to announce an update on its agricultural operations in Tanzania.

The Company has received notification from a global Singapore-based agricultural trading company that they have signed a Letter of Intent ("LOI") to fully purchase the Company's 2013 crop production at the prevailing market prices at the time of the harvest. Transportation costs will be fully borne by the buyer. This agreement will be negotiated on a rolling basis every year.

This de facto secures an off-take sales agreement for the Company, thereby providing a secure revenue stream for Obtala, and allowing an increase in the production of higher yielding crops.

Chairman's comment

Francesco Scolaro, Chairman of Obtala, commented: "I am delighted to announce this new development of our agriculture project. The interest shown by this buyer, who is well established in the global agricultural market with operations in c. 40 countries, is highly encouraging in so far as it ensures revenue guarantee directly from the farm gate, immediately upon harvest in Q2 2013. As we develop the project, we will negotiate the best prices and in time conclude an off-take agreement, which will allow us to fast-track the development of the project with the assurance of production income from a global trading partner."

Obtala Resources Francesco Scolaro - Chairman Simon Rollason - Managing Director www.obtalaresources.com	[phone]
Macquarie (Nomad and Broker)
Nicholas Harland	[phone]
Steve Baldwin

 

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