OREANDA-NEWS. February 01, 2012. The Board of Directors of RusForest AB has decided to propose to the shareholders at an extraordinary general meeting to take necessary decisions in order to enable the Board of Directors to decide on a rights issue amounting to approximately SEK 450 million (USD 67 million), as the company said in a press release received by Lesprom Network.

The capital will be used for finalization of the ongoing investments in Eastern Siberia as well as in the Arkhangelsk region and will enable continued increases in harvesting capacity as well as an expansion of the sawmilling capacity across the Company's operations. The rights issue will also serve to provide RusForest with the additional working capital needed as an effect of previous losses in operations due to the reasons listed above.

RusForest is forestry and sawmilling company operating in Eastern Siberia and the Arkhangelsk region of Russia. The Company controls long term forest leases with an annual allowable cut of approximately 3.6 million cubic metres, and utilizes these resources to produce a wide range of sawnwood products. Eastern Siberia is renowned for its pine and larch of exceptional quality, while the Arkhangelsk Region in northwest Russia has high quality spruce and pine forests similar to those found in northern Sweden.