Phaunos Timber Fund Limited ("Phaunos") confirms a forward pulpwood sale agreement for Pradera Roja which will realise total payments of $2.4 million. The agreement is based on Pradera Roja receiving up-front payments for eucalypt pulpwood that will be harvested up to 2022, as the company says in the press release received by Lesprom Network.
Stephen Addicott of Stafford Timberland, the manager of Phaunos, said: "This forward sale contract with a major Uruguayan pulp mill represents an innovative way to monetise immature, greenfield plantations through forward sales contracts. The properties that are part of the agreement represent the poorer quality stands within the Pradera estate and those that have a higher proportion of stands grown on pulpwood regimes as compared to higher value, longer rotation, sawlog regimes. The forward sale contract will also reduce Phaunos' annual operating and management costs as these annual costs will be covered by the agreement".
Phaunos is a Guernsey-domiciled closed-ended investment company authorised by the GFSC. Its investment objective is to provide shareholders with attractive long term total returns, expected to be in the form of capital appreciation but with some income, through a diversified portfolio of timberland and timber-related investments.