PRIMA COLOMBIA HARDWOOD INC. AND PACIFIC LUMBER INTEND TO JOIN FORCES IN COLOMBIA TO INCREASE TIMBER RESERVES 03/04 03:00 PM
TSX-V: PCT
VANCOUVER, March 4 /CNW/ - Prima Colombia Hardwood Inc. (PCTZF:$0.2975,$0.0205,7.40%) ("Prima") is pleased to announce that it has entered into a Letter of Intent with Pacific Lumber S.AS. ("Pacific") to join forces in Colombia to further develop Prima as a major international tropical hardwood timber development, production and marketing company.
Pacific is part of Blue Pacific Assets Corp. with extensive expertise in developing highly successful natural resource projects in Colombia.
"Combining Prima's extensive forest expertise with Pacific's proven successes in Colombia is an amazing synergy and fit", says Donald P. Hayes, CEO. "This alliance is an important strategic advance to management's stated objective to develop a world class tropical hardwood timber development, production and marketing company in Colombia."
All Prima forestry concession are intended to be operated following the highest standards of sustainable forestry and environmental management. Prima brings over 30 years of forestry experience and dedication to best environmental operating practices and working with local communities and governmental agencies. CEO, Donald Hayes, is a leading member in the British Columbia forest industry and is a past Director of Forest Renewal British Columbia, has served on the Minister of Forest of British Columbia Forestry Roundtable and was appointed by the Premier of British Columbia as a founding Director of the New Relationship Trust, established to work with First Nations in local communities in British Columbia.
The Letter of Intent with Pacific anticipates the potential addition of rights to harvest up to 31.5 million cubic meters pursuant to timber concessions to be obtained by Prima through the efforts of Pacific (or approximately 10 times Prima's current timber reserves).
Prima's timber reserves under its current license is 3,121,720 cubic meters from an area of 44,596 hectares. To date Pacific has entered into a Memorandum of Understanding with communities in Colombia in respect of potential forest rights related to 800,000 hectares. Although timber inventories in this area are not complete, it is anticipated that the area will contain sustainable timber reserves of at least 31.5 million cubic meters.
The Letter of Intent provides that Pacific and Prima will work exclusively together on timber acquisition and to further the business interests of Prima in Colombia.
This will be achieved by:
Pacific obtaining timber concessions, licenses or other exclusive binding rights to harvest timber from communities or other third parties for Prima; and
Pacific working to further the business interests of Prima by providing operating, regulatory, community and other support.
In consideration of these efforts, Prima will issue up to a maximum of 60 million common shares in the capital of Prima, which currently would represent 17.89% of the issued and outstanding shares of Prima after their issuance.
The shares will be performance based and issued at a rate of 1.9 Prima Shares for each 1.0 cubic meter of timber that Prima acquires the exclusive right to harvest by entering into concessions as a result of the efforts of Pacific.
The commitments set out in the Letter of Intent are subject to the execution of formal binding agreements, board approvals and applicable regulatory approvals, including the approval of the TSX Venture Exchange.
About Prima Colombia
Prima Colombia Hardwood Inc. (PCTZF:$0.2975,$0.0205,7.40%) is a TSX Venture Exchange-listed Canadian based forest products company focused on international tropical hardwood timber development, production and marketing. Prima Colombia's initial 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.
