Africa-focussed forestry and timber trading company Woodbois has entered into a memorandum of understanding with an unnamed, “leading” West African timber supplier to offtake all of their timber production in Liberia.
The AIM-traded firm said a formal offtake agreement was expected to be entered into in January 2020.
Under the terms of the memorandum, Woodbois would have exclusive right of first refusal to purchase.
The formal offtake agreement is expected to generate material additional trading revenue for the group in 2020, the board said, with scope to increase as the agreement developed.
It said the memorandum would automatically renew on 31st December 2020, unless otherwise agreed, with either party able to terminate it at one month’s notice.
“This agreement will allow us to further diversify the products we offer to our broad customer base,” said chief executive officer Paul Dolan.
“We are delighted that the organisation with whom we have partnered in Liberia, has recognised the advantages of supplying through the Woodbois brand.”