PRIMA COLOMBIA HARDWOOD INC. INCREASES TIMBER RESERVE UNDER EXCLUSIVE AGREEMENT FROM 1,050,000 TO 3,121,720 CUBIC METERS
December 07 2010 - 8:00AM
PR Newswire (Canada)
VANCOUVER, Dec. 7 /CNW/ -- TSX-V: PCT VANCOUVER, Dec. 7 /CNW/ -
Prima Colombia Hardwood Inc., (TSX-V:PCT) ("Prima Colombia" or the
"Company") is pleased to announce that the exclusive timber license
agreement between Prima Colombia's Colombian domiciled subsidiary,
REM International C.I.S.A. ("REM"), and the Community of Los
Delfines (the "Timber Agreement") has been amended to increase the
volume of timber from 1,050,000 to 3,121,720 cubic meters and to
increase the term for up to 25 years (the "Amendment"). "The
increase in timber reserve is expected to have significant
financial impact and greatly improves the Company's sustainable
production base over the term of the Timber Agreement," says CEO
Donald P. Hayes. "We are very grateful to the people of Los
Delfines, who through this amendment have reconfirmed their
commitment and cooperation with REM, and we look forward to
continued close working relations with the Community." "We are very
pleased to deliver such a large increase in our timber reserve at
this early stage of the Company's development," says COO Harold F.
Hayes. The Amendment was executed, December 6, 2010, by REM, and
authorized representatives of the Los Delfines Community and
includes: 1. An increase in timber volume under the Timber
Agreement from 1,050,000 to 3,121,720 cubic meters; 2. The
establishment of an annual allowable cut of 208,114 cubic meters
per annum with the ability to carry forward prior years' undercuts
or volume shortfalls; 3. A renewed term of 15 years commencing on
the date of execution of the Amendment; 4. An option to add another
10 years at the end of the 15 year term on notice from Prima
Colombia; 5. The opportunity to introduce other suitable harvesting
systems in addition to the helicopter harvesting; 6. A commitment
to continuing cooperation including a mutual maximum 5 day
turnaround provision for further approvals, signatures or actions;
7. Agreement on all consideration to be paid to the Community in
respect of the timber harvested throughout the term of the Timber
Agreement commencing at $10 US per cubic meter and increasing to
$20 US per cubic meter over the term. Payments in respect of timber
harvested are payable after the actual production and sale of the
timber; and 8. An acknowledgement by both Parties that the
Agreement is in good standing. Prima Colombia continues to seek
opportunities to enter into additional forest licenses and further
increase timber reserves in Colombia. About Prima Colombia Prima
Colombia Hardwood Inc. is a TSX Venture Exchange-listed Canadian
based forest products company focused on international tropical
hardwood timber development, production and marketing. Prima
Colombia's operations are located near Bahia Solano, Department of
Choco on the west coast of the Republic of Colombia. The harvesting
will be carried out using sustainable, selective, low intensity,
helicopter logging which is both highly regarded as having low
environmental impact and involves no 'clear cutting'.
Forward-Looking Information This news release contains
"forward-looking information", which may include, but is not
limited to, statements with respect to the future financial or
operating performance of Prima Colombia and its subsidiaries.
Often, but not always, forward-looking statements can be identified
by the use of words such as "plans", "expects", "is expected",
"budget", "scheduled", "estimates", "forecasts", "intends",
"anticipates", or "believes" or variations (including negative
variations) of such words and phrases, or state that certain
actions, events or results "may", "could", "would", "might" or
"will" be taken, occur or be achieved. Forward-looking statements
involve known and unknown risks, uncertainties and other factors
which may cause the actual results, performance or achievements of
Prima Colombia to be materially different from any future results,
performance or achievements expressed or implied by the
forward-looking statements. Forward-looking statements contained
herein are made as of the date of this press release and Prima
Colombia disclaims, other than as required by law, any obligation
to update any forward-looking statements whether as a result of new
information, results, future events, circumstances, or if
management's estimates or opinions should change, or otherwise.
There can be no assurance that forward-looking statements will
prove to be accurate, as actual results and future events could
differ materially from those anticipated in such statements.
Accordingly, the reader is cautioned not to place undue reliance on
forward-looking statements. Neither TSX Venture Exchange nor its
Regulation Services Provider (as that term is defined in the
policies of the TSX Venture Exchange) accepts responsibility for
the adequacy or accuracy of this news release. Donald Hayes, Chief
Executive Officer and Director Or Kim Galavan, Director
Communications & Corporate Secretary, Suite 1310 - 1090, West
Georgia St., Vancouver, BC, V6E 3V7, Tel: 604-568-4755, Fax:
604-568-4756, Website: www.primahardwood.com
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