Obtala Limited announced that its board has approved the signing of a Memorandum of Understanding (MOU) with FundInvest SA (‘FundInvest') with a view to establishing a new joint venture company by the end of first quarter of 2018 to promote timber processing in Mozambique. Following months of talks, an MOU has been reached to set up a joint venture company whose business shall be to own and operate a timber harvesting, purchasing, processing, export and distribution business. The joint venture company will be 51% owned by FundInvest, 48% by Argento and 1% by Obtala. The activity of the joint venture company will consist of purchasing logs primarily from small concession holders (that are otherwise illegally exported), delivery and processing of timber at sawmills within Mozambique, and the export of the resulting wood products to international markets. FundInvest's primary responsibilities will be to assist with purchasing timber harvested by concession holders, managing the transport of wood to sawmills, arranging export processes, and obtaining government and regulatory approvals, permits and licenses. Obtala does not plan to invest directly into the joint venture company but will be responsible for arranging preferential rate financing from socially impactful funders and government entities and will make its sawmill in Nampula available for processing the joint venture's timber at market competitive prices. Obtala and FundInvest will work jointly to sell the joint venture's processed timber.