Subiaco-based gold and copper explorer Red Emperor Resources NL has branched out into the timber industry after signing an agreement with its Russian partners to harvest a resource in the country.
The company has signed a memorandum of understanding whereby the unnamed Russian partners will provide the opportunity to acquire a 100 per cent interest in a licence of a timber project.
Under the terms of the agreement Red Emperor will acquire a 100 per cent interest in the project by paying EUR5 million to the partners and the issue of 30 million Red Emperor shares for consideration.
Red Emperor will also meet all costs associated with the acquisition.
Red Emperor is continuing its due diligence on the project with a view to acquiring it during the next 3 to 6 months. It is expected that the licence for the Project will have an annual harvesting allowance of well in excess of 500,000m3 per annum.
Sawn timber is presently selling for in excess of US$200 a cubic metre. Poyry Forest Industry Consulting has been engaged to prepare a preliminary independent expert's report on the Project. Poyry Group is a client and technology
oriented, globally operating consulting and engineering firm with some 7300 experts in 45 countries with three core areas of expertise: forest industry, energy and infrastructure and environment.
The Company is not at this time able to disclose any further details regarding the Project as any premature disclosure may be prejudicial to the Company's negotiations and interests.
