Glen Eagle subsidiary acquires land in Honduras

9 October 2016 (Last Updated October 9th, 2016 18:30)

Glen Eagle Resources' wholly owned subsidiary Cobra Oro has purchased 15,000m² of land in Choluteka, Honduras.

Glen Eagle Resources' wholly owned subsidiary Cobra Oro has purchased 15,000m² of land in Choluteka, Honduras.  

Under the deal, Cobra Oro acquires its own free trade zone, which will reinforce its earlier exemption to pay a minimum 25% flat tax on profits, 25% duty tax on imports, reduce sales tax on export from 6% to 3% and cancellation of $8,000 in monthly rent.

This purchase will also secure Cobra Oro’s ongoing expansion project supported at its core by an asset strategically in an economic growth area.

"The deal was finalised following several months of negotiations for around $350,000."

The deal was finalised following several months of negotiations for around $350,000 and represents 20% discount over the municipal evaluation.

Cobra Oro’s gold processing plant is located next to Pepsi Cola bottling plant and the Chamber of Commerce headquarters for southern Honduras.

Moreover, the plant is enclaved in a larger free trade zone encompassing over 600,000m² within 1km from the Pan American Highway.

Cobra Oro’s gold processing plant will also border with three crossroads, gaining access to the larger zoning area of the industrial park from the main entrance.

This investment was based on the belief that Cobra Oro’s project could expand threefold in the near-future and generate substantial cashflow.