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Mining and natural resources company Obtala Resources Ltd (LON:OBT) listed in London and with a market capitalisation of around £80m, specialises in natural resources investments such and mining, timber investments and agriculture. The company has recently joined the throng of investors making forestry investments in an effort to geenrate non-correlated returns. The company has signed an agreement to purchase a 75 per cent stake in a Mozambique registered timber investments company which holds a number of forestry concessions in the East African country. The group stated that, this latest in a string of

forestry investments

will help to create a self-sustainable, profitable timber investment and agricultural business model, and expects short-term revenue from its investments, helping the firm to further establish itself in the region. Obtala has previously invested in mining and mineral exploration companies, and is now concentrating on developing interests in energy, agriculture and other strategic investments. Other parts of the company have acquired rights to gold, uranium, nickel and iron ore projects in Tanzania. Forestry investments generate returns from the sale of harvested timber rather than traditional market movements such as is the case with equities, making timber investments popular for those investors seeking to generate non-correlated investment returns. Further

Obtala

holding include a 46 per cent stake in of Paragon Diamonds Ltd (LON:PRG) as well as investments in tin and iron ore projects in South Africa and a 75 per cent in forestry investment and agriculture investment company Montara Continental. With this latest forestry investment, Montara will acquire a 75 per cent holding of a privately held timber investment group that controls 180,000 hectares of forests in the country, whilst the local owners retain a 25 per cent stake in the company. The deal means that Montara will inject capital to aid the local operator in managing the forestry concessions in exchange for 70 per cent of the company, as well as contributing €150,000 in Obtala shares and €100,000 in cash for the remaining 5 per cent. On completion of this latest in a line of forestry investments, Montara's will own approximately 293,000 hectares of forest lands in Mozambique, with an additional application for a further 54,000 hectare concession pending approval with the ministry of agriculture, this makes it one of the largest timber investment firms in the region. The deal is set to allow Obtala the economies of scale to partner with a large manufacturer and take ownership of the entire value chain, whilst also creating employment and wealth locally in Mozambique according to the company’s Chairman.

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