Prima Columbia Hardwood Inc (fka PCT)

[SPARK]

VANCOUVER, Dec. 21, 2011 /CNW/ - Prima Colombia Hardwood Inc. (TSXV:PCT.V - News) ("Prima" or the "Company") advises that the cutting permits that it had hoped would be received by the end of the current year have not yet been issued. While Prima and the Ministry of Environment of Colombia continue to work constructively together and the permit process is progressing, Prima is unable to determine with any certainty the expected issuance date of the cutting permits required for the start up of its operations. Prima remains prepared to commence operations within 3 months of issuance of the cutting permits.
The Company is in direct discussion with the Minister of the Environment and has not been advised of any issues which might prevent the issuance of the requested permits. The Ministry has been recently reorganized and the Company has been advised that there is a significant back log of resource sector permit applications.
Given the uncertainty of timing in respect of the issuance of the permits and start up of operations, the Company plans to further reduce its monthly cash requirements in an orderly fashion to approximately $200,000 per month in order to preserve the timber opportunity until the permits are obtained. In order to fund this delay and discharge liabilities, the Company intends to sell some of its assets and seek bridge loans secured against its equipment.
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's initial operations are located near Bahia Solano, Department of Choco on the west coast of the Republic of Colombia. All Prima forestry concessions 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.