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As a Grower, you will receive a licence to
grow mahogany on a minimum of 2 Woodlots, each Woodlot being 0.25 hectares
or approximately .625 acre in size, on which
the Planting Co (as a subcontractor to the
Responsible Entity) will plant an average of
no less than 142 Trees. Your Woodlots will
be established within 12 months of your
application being accepted.
As a sub-contractor to the Responsible
Entity, the Land Co will maintain the
Woodlots on your behalf.
Under the terms of the Maintenance
Agreement, the Land Co undertakes that
there will be an average of at least 142
healthy Trees on each Woodlot at the end
of the 13-month period following planting.
Should the average not exceed the
minimum planting density of 142 healthy
Trees, the Land Co will have replacement
Trees planted to ensure the minimum
planting density.
And the Timber Co, as a sub-contractor to
the Responsible Entity, will Harvest the
Trees on your behalf and market and sell the Timber. Three thinnings or harvests will be
undertaken during the term of the Woodlots.
Half the trees will be thinned prior to year
6, a second thinning of 25% will take place
at approximately year 11 and the final
harvest of the balance will take place
around year 16 of the Project. The Grower
will receive any proceeds from thinnings or
harvests and 50% of any carbon credits.
Harvesting, milling, drying and marketing
costs will be deducted prior to distribution
of income.
What you receive
When you become a Grower, you will receive:
• a confirmation of Allotment (or of Allocation) which will include
details of your Woodlots (or Woodlot numbers);
and
• a statement of Application Fees paid, GST, details and dates of payment
to assist in the preparation of your income tax return.
During the Project you will receive:
• annual reports on the progress of the Plantation;
and
• annual financial reports.
How much does it cost?
The Application Fee for each Woodlot is $6,900 (including GST) payable
on Application. You must apply for at least 2 woodlots.
At the time of harvest, Growers will also pay a Harvest Fee (to pay for
Harvesting and Milling costs), which will be deducted from the proceeds
of the sale of the Timber (to give Net Proceeds of Sale). In addition,
Growers will pay a Licence Fee, Maintenance Fee and Marketing Fee
together totalling 15% of Net Proceeds of Sale to give Net Harvest
Return.
There may be a Last Resort Management Fee, explained on page 26 of the
PDS.
In addition, an Incentive Fee of 25% of Net Harvest Return (including
GST) once the cumulative Net Harvest Return exceeds $45,000 per Woodlot,
will be paid to the Responsible Entity to be passed on to the Land Co
and the Timber Co.
Other possible ongoing costs for Growers will be interest if they choose
to borrow.
extracted from NTT Mahogany
2006-2008 Project PDS |
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Simply download an Investment
Brochure/PDS above. It’s that easy! |
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