LONDON (Alliance News) - Obtala Resources Ltd Wednesday said it has inked heads of terms with a private non-related Tanzanian entity to form a joint venture to develop a commercial farming operation over 1,265 hectares in Tanzania.
It will hold a 70% interest in the venture, whilst the undisclosed partner will hold a 30% interest. This will take its total land held under lease agreements in Tanzania to around 1,800 hectares.
"This joint venture will allow us to significantly increase our land holding and provides a strong foundation to work with our partners in establishing a significant mixed fruit plantation in Tanzania," said Managing Director Simon Rollason.
"The existing infrastructure, water availability and close proximity to the export facilities at Dar es Salaam makes this an exciting opportunity. The land is close to our existing operation thus creating synergies in terms of manpower and expertise. The funding of the seed stock and provision of highly trained plantation experts by our fruit trading partner provides significant cost savings at the start of this new enterprise," Rollason added.
Shares in Obtala were untraded Wednesday morning. It last closed at 7.25 pence.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
Copyright 2015 Alliance News Limited. All Rights Reserved.
