Kibush Capital Corp. (DLCR)

[twosecure]

$$$$$$$$$$$$ DLCR $$$$$$$$$$$$

Papua New Guinea:

More than 60 commercial species of timber exist in the country, falling into three broad categories; major hardwoods, commercial hardwoods, and major conifers. Amongst the most valuable of the major hardwoods is KWILA and ROSEWOOD.

Logging :

‘DLCR’, through its subsidiary Aqua Mining, was successful in obtaining Government approval for the commercialization of timber resources at Kubuna and Rigo, Papua New Guinea. The area that ‘DLCR’ has agreements with the landowners cover at Kubuna 40,000 hectares and Rigo 25,000 hectares. ‘DLCR’ has commenced logging during the December quarter at Rigo and expect to commence at Kubuna during the March quarter. Both sites are excellent resources covering many species of wood, mainly hardwoods KWILA and ROSEWOOD, there are a number of exotic wood types. It has taken ‘DLCR’ some time to establish the infrastructure at Rigo, but ‘DLCR’ has now completed the access road works and established a base camp for 38 on-site workers.


Paradise Gardens Development


‘DLCR’ has entered into a management agreement with Paradise Gardens Development (PNG) Ltd, a Timber Logging and Processing Company with operations in Papua New Guinea (“Paradise Gardens”). ‘DLCR’ has the right to Paradise Gardens operates a Timber Authority registered with the PNG Forest Authority which permits an annual timber harvest of 5000 cubic meters, the total area under the Timber Authority is 3300 hectares. Predominant species include Terminalia, Aglaia, White Cheesewood, Pink Satinwood, Erima, Taun, ROSEWOOD, KWILA and other hardwoods. Paradise Gardens primarily sells its timber locally to retailers and wholesalers in Papua New Guinea. ‘DLCR’ concluded the acquisition of Paradise Gardens on October 7 th 2016. During the negotiation period, (June 2015 to October 7 th 2016) ‘DLCR’ management fee includes the profit earned by Paradise Gardens during such period.


Initially, ‘DLCR’ is focusing on the domestic market in Papua New Guinea, where there are a number of major suppliers to the retail market place. As ‘DLCR’ capacity increases, ‘DLCR’ will look to export timber to the nearby Australian and Asian markets where demand is greater than supply.



The logging industry is very competitive in Papua New Guinea. ‘DLCR’ believes that their policy of working with the landowners and providing direct employment to the local villagers appears to provide ‘DLCR’ with a competitive advantage of greater acceptance of ‘DLCR’ activities by government officials, local businesses and local Papua New Guineans.

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