PRIMA COLOMBIA HARDWOOD INC. REPORTS PROGRESS IN OPERATIONS IMPLEMENTATION
February 10 2011 - 7:30AM
PR Newswire (Canada)
VANCOUVER, Feb. 10 /CNW/ -- TSX-V: PCT
VANCOUVER, Feb. 10 /CNW/ - Prima Colombia Hardwood Inc. (TSX-V:PCT)
("Prima Colombia" or the "Company") provides an operational update
on the Company's activities. Prima Colombia's
operations implementation is progressing with first revenue
anticipated in Q3. Operations are planned for tree cutting to
commence in May, helicopter harvesting in July and first log sales
in August. "Prima Colombia is on track to expect Q3 first
revenue" reports Donald P. Hayes, CEO. "The timber
opportunity in Colombia is larger than anticipated. We are
confident in our ability to build a strong tropical hardwood timber
development, production and marketing company." The Company is in
advanced negotiations to further expand its timber reserves.
Operations Implementation -- Vancouver and Bogota corporate offices
are established. -- Key operating and management personnel have
been retained. -- The camp facility at Huaca is fully operational
providing a base for the operations including accommodation, site
office, log sorting yard, log storage and loading yard, satellite
communication, mechanical support and supplies depot. -- The
Company currently has 90 employees including 72 Colombian
nationals. Employment is expected to continue to expand. -- Harvest
planning and engineering are in full operation using state of the
art inventory recording technology. -- Cutting Permit 1 was renewed
during 2010. Cutting Permit 2 has been submitted for approval and
Cutting Permit 3 is pending submission in Q2. -- Harvest planning
and inventory work has confirmed a varied timber mix that is
sustainable and has a broad sales market opportunity. -- The
Company is in advanced negotiations for: o The lease and
development of a container staging at the Port of Buenaventura; o
The lease of heavy lift helicopter capacity for logging; o The
purchase of a barge and design modification to both transport logs
on deck and supply fuel and other infrastructure support for multi
camp operations; o The lease of other heavy equipment in Colombia;
and o The purchase of speciality logging and helicopter maintenance
equipment and attachments in Canada for export to Colombia. Timber
Reserves On December 7, 2010, Prima Colombia reported that it
increased its timber reserve from 1,050,000 to 3,121,720 cubic
meters and renewed the term of the lease to 15 years with an option
to extend a further 10 years at the end of the 15 year term.
The Company is in advanced negotiations to further expand its
timber reserves. Commencement of Operations Based on the efforts to
date, the operating schedule is expected to be as follows: Tree
Cutting May 2011 Helicopter Harvesting July 2011 Log Sales August
2011 Employment & Communities Prima Colombia is working well
with the local communities of Huaca and Bahia Solano. As well
as being a large employer, Prima Colombia supports the local
communities directly in respect of education, health and other
services and through its association with and contribution to the
Clinton Giustra Sustainable Growth Initiative (CGSGI). The
Company recently co-funded the installation of the first power line
to the community of Huaca which was completed in January
2011. 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 statements" within the
meaning of the United States Private Securities Litigation Reform
Act of 1995 and "forward-looking information" within the meaning of
applicable Canadian securities legislation. Often, but not always,
forward-looking information can be identified by the use of words
such as "plans", "expects" or "does not expect", "is expected",
"estimates", "intends", "anticipates" or "does not anticipate", or
"believes", or variations of such words and phrases or statements
that certain actions, events or results "may", "could", "would",
"might" or "will" be taken, occur or be achieved. Examples of such
statements include statements pertaining to timing of and revenue
from current and proposed timber development, operations,
production and marketing. There can be no assurance that the plans,
intentions or expectations upon which these forward-looking
statements and information are based will occur. Forward-looking
statements and forward-looking information are subject to a variety
of known and unknown risks, uncertainties and assumptions,
including those discussed in Prima Colombia's quarterly and annual
management's discussion and analysis and under "Risk Factors" in
Prima Colombia's Filing Statement dated September 17, 2010, which
are available at www.sedar.com under Prima Colombia's profile, and
any of 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 information contained in this news
release. Some of the factors which could affect future
results and could cause actual results to differ materially from
those expressed in the forward-looking statements and information
contained herein include: general economic, market, business and
governmental conditions; lack of operating history; results of
operations and development activities; continued availability of
capital and financing; reduced demand for timber (cyclical nature
of industry); availability of necessary equipment or the failure of
equipment or processes to operate as anticipated; transportation,
development, construction and production delays; anticipated and
unanticipated costs; accidents; the regulatory and foreign
environment and the timing and possible outcome of regulatory
matters, including governmental approvals; political instability in
Colombia; property title disputes or claims; environmental risks,
including natural disasters; reclamation expenses; labour disputes
and other risks of the timber industry; and any of the assumptions
below not being correct. Such forward-looking information is based
on a number of assumptions which may prove to be incorrect,
including, but not limited to: cutting permits are issued on a
timely basis; tree cutting commences in May; heavy lift helicopter
arrives and harvesting commences in July; other equipment is
delivered on a timely basis; and customer trial orders are
fulfilled. The factors identified above are not intended to
represent a complete list of the factors that could affect Prima
Colombia. Additional factors are noted under the heading
"Risk Factors" in the Filing Statement dated September 17, 2010
available at www.sedar.com under Prima Colombia's profile. Further,
should one or more of these risks or uncertainties materialize, or
should assumptions underlying the forward-looking information prove
incorrect, actual results, performance or achievement may vary
materially from those expressed or implied by the forward-looking
information contained in this news release. Forward-looking
statements and information are based on the beliefs, estimates and
opinions of management at the date the statements are made and are
subject to change without notice. These factors should be carefully
considered and viewers are cautioned not to place undue reliance on
forward-looking information, which speaks only as of the date of
this news release. Other than as required by law, Prima
Colombia does not undertake to update forward-looking statements or
information if management beliefs, estimates or opinions or other
circumstances should change, or to reflect events or circumstances
that occur after the date of this news release or to reflect the
occurrence of unanticipated events. All forward-looking information
attributable to Prima Colombia herein is expressly qualified in its
entirety by the cautionary statements contained in or referred to
herein. 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. To view this news release in HTML
formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/February2011/10/c9511.html
tabletr valign="top"td align="left"Donald Hayesbr/ Chief Executive
Officer and Director /td td
align="left"Kim Galavanbr/ Director Communications & Corporate
Secretary/td/tr tr valign="top"td align="left"Suite 880 - 1090 West
Georgia St.br/ Vancouver, BC V6E 3V7/td td align="left"Tel:
604-630-7600br/ Fax: 604-630-7610br/ Website: a
href="http://www.primahardwood.com"www.primahardwood.com/a/td/tr/table
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