Value Microcaps Food, Agriculture and Soft Commodities

[Bobwins]

still no permits but company seems determined to keep working towards that goal.


TSX-V: PCT
VANCOUVER , June 26, 2012 /CNW/ - Prima Colombia Hardwood Inc. (TSX Venture:PCT) ("Prima" or the "Company") provides an update on the following Company matters:
Permits
On December 21, 2011 , the Company advised that the cutting permits that it had hoped would be received by the end of 2011 had not yet been issued. These permits remain unissued.
Prima and the Ministry of Environment of Colombia ("Ministry") have continued to work constructively together and the permit process has progressed including successful completion of site technical visits by the Ministry on March 30, 2012 and issuance of certain technical reports from the Ministry to the independent Colombian Environmental Licensing Authority ("ANLA" or Autoridad Nacional de Licencias Ambientales).
The Company remains in contact with the Minister of the Environment and his senior staff and has not been advised of any issues which might prevent the issuance of the requested permits. The Ministry was reorganized in late 2011 and the Company continues to be advised that there is a significant back log of resource sector permit applications.
Although permits of this nature are routinely issued in Colombia and the above noted progress has been made, Prima remains unable to determine with any certainty the expected issuance date of the cutting permits required for the start up of its operations.
Cash Requirements & Funding
As advised on December 21, 2011 , given the uncertainty of timing with respect to the issuance of the permits, the Company has rationalized the operation to reduce its monthly cash requirements in an orderly fashion in order to preserve the timber opportunity until the permits are obtained. At the current time, monthly cash requirements are less than $100,000 per month.
In order to fund this ongoing delay, the Company continues to sell assets. The Company has successfully completed sales of a helicopter, tug boat and some minor assets for total proceeds of approximately $USD 1.0 million. The Company is also in advance negotiation to sell a barge with an expected closing date of middle of July 2012. The Company will continue to actively market its remaining fixed assets until such time as the permits are issued.
At the current time, the Company has sufficient funds to maintain the permitting process through August.
Director Change
The Company also announces the resignation of Harald Ludwig as a Director effective June 14 , 2012. The Board of Directors would like to thank Mr. Ludwig for his contribution to the Company.
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 timber concessions and 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.