PRIMA COLOMBIA HARDWOOD INC. REPORTS PROGRESS IN OPERATIONS IMPLEMENTATION

     TSX-V: PCT

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 August. 

"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 reserves.

Operations Implementation

  • 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 Q2.
  • 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 Buenaventura;
    • 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 operations;
    • 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.

Timber Reserves
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 as follows:

Tree Cutting May 2011
Helicopter Harvesting                         July 2011
Log Sales August 2011

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'.

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.

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 fulfilled.

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 release.

SOURCE Prima Colombia Hardwood Inc.

For further information:

Donald Hayes
Chief Executive Officer and Director       
Kim Galavan
Director Communications & Corporate Secretary
Suite 880 - 1090 West Georgia St.
Vancouver, BC V6E 3V7
Tel:  604-630-7600
Fax:  604-630-7610
Website:  www.primahardwood.com

Profil de l'entreprise

Prima Colombia Hardwood Inc.

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