VANCOUVER, Feb. 10 /CNW/ - Prima Colombia Hardwood Inc. (TSX-V:PCT) ("Prima Colombia" or the "Company") provides an operational update on the Company's activities.
Prima Colombia's operations implementation is progressing with first
revenue anticipated in Q3. Operations are planned for tree cutting to
commence in May, helicopter harvesting in July and first log sales in
"Prima Colombia is on track to expect Q3 first revenue" reports Donald
P. Hayes, CEO. "The timber opportunity in Colombia is larger than
anticipated. We are confident in our ability to build a strong tropical
hardwood timber development, production and marketing company."
The Company is in advanced negotiations to further expand its timber
Vancouver and Bogota corporate offices are established.
Key operating and management personnel have been retained.
The camp facility at Huaca is fully operational providing a base for the
operations including accommodation, site office, log sorting yard, log
storage and loading yard, satellite communication, mechanical support
and supplies depot.
The Company currently has 90 employees including 72 Colombian
nationals. Employment is expected to continue to expand.
Harvest planning and engineering are in full operation using state of
the art inventory recording technology.
Cutting Permit 1 was renewed during 2010. Cutting Permit 2 has been
submitted for approval and Cutting Permit 3 is pending submission in
Harvest planning and inventory work has confirmed a varied timber mix
that is sustainable and has a broad sales market opportunity.
The Company is in advanced negotiations for:
The lease and development of a container staging at the Port of
The lease of heavy lift helicopter capacity for logging;
The purchase of a barge and design modification to both transport logs
on deck and supply fuel and other infrastructure support for multi camp
The lease of other heavy equipment in Colombia; and
The purchase of speciality logging and helicopter maintenance equipment
and attachments in Canada for export to Colombia.
On December 7, 2010, Prima Colombia reported that it increased its
timber reserve from 1,050,000 to 3,121,720 cubic meters and renewed the
term of the lease to 15 years with an option to extend a further 10
years at the end of the 15 year term. The Company is in advanced
negotiations to further expand its timber reserves.
Commencement of Operations
Based on the efforts to date, the operating schedule is expected to be
Employment & Communities
Prima Colombia is working well with the local communities of Huaca and
Bahia Solano. As well as being a large employer, Prima Colombia
supports the local communities directly in respect of education, health
and other services and through its association with and contribution to
the Clinton Giustra Sustainable Growth Initiative (CGSGI). The Company
recently co-funded the installation of the first power line to the
community of Huaca which was completed in January 2011.
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
Colombia's 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'.
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.
There can be no assurance that the plans, intentions or expectations
upon which these forward-looking statements and information are based
will occur. Forward-looking statements and forward-looking information
are subject to a variety of known and unknown risks, uncertainties and
assumptions, including those discussed in Prima Colombia's quarterly
and annual management's discussion and analysis and under "Risk
Factors" in Prima Colombia's Filing Statement dated September 17, 2010,
which are available at www.sedar.com under Prima Colombia's profile,
and any of which may cause the actual results, performance or
achievements of Prima Colombia to be materially different from any
future results, performance or achievements expressed or implied by the
forward-looking information contained in this news release. Some of
the factors which could affect future results and could cause actual
results to differ materially from those expressed in the
forward-looking statements and information contained herein include:
general economic, market, business and governmental conditions; lack of
operating history; results of operations and development activities;
continued availability of capital and financing; reduced demand for
timber (cyclical nature of industry); availability of necessary
equipment or the failure of equipment or processes to operate as
anticipated; transportation, development, construction and production
delays; anticipated and unanticipated costs; accidents; the regulatory
and foreign environment and the timing and possible outcome of
regulatory matters, including governmental approvals; political
instability in Colombia; property title disputes or claims;
environmental risks, including natural disasters; reclamation expenses;
labour disputes and other risks of the timber industry; and any of the
assumptions below not being correct.
Such forward-looking information is based on a number of assumptions
which may prove to be incorrect, including, but not limited to: cutting
permits are issued on a timely basis; tree cutting commences in May;
heavy lift helicopter arrives and harvesting commences in July; other
equipment is delivered on a timely basis; and customer trial orders are
The factors identified above are not intended to represent a complete
list of the factors that could affect Prima Colombia. Additional
factors are noted under the heading "Risk Factors" in the Filing Statement dated September 17, 2010 available at
www.sedar.com under Prima Colombia's profile. Further, should one or
more of these risks or uncertainties materialize, or should assumptions
underlying the forward-looking information prove incorrect, actual
results, performance or achievement may vary materially from those
expressed or implied by the forward-looking information contained in
this news release. Forward-looking statements and information are based
on the beliefs, estimates and opinions of management at the date the
statements are made and are subject to change without notice. These
factors should be carefully considered and viewers are cautioned not to
place undue reliance on forward-looking information, which speaks only
as of the date of this news release. Other than as required by law,
Prima Colombia does not undertake to update forward-looking statements
or information if management beliefs, estimates or opinions or other
circumstances should change, or to reflect events or circumstances that
occur after the date of this news release or to reflect the occurrence
of unanticipated events. All forward-looking information attributable
to Prima Colombia herein is expressly qualified in its entirety by the
cautionary statements contained in or referred to herein.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this news
SOURCE Prima Colombia Hardwood Inc.
For further information:
|Donald Hayes |
Chief Executive Officer and Director
Director Communications & Corporate Secretary
|Suite 880 - 1090 West Georgia St. |
Vancouver, BC V6E 3V7