Aug 31, 2006. /Lesprom Network/. Swedish private equity firm Varyag Resources AB Thursday said it has decided to exercise a call option agreement with Vostok Nafta Investment Ltd by acquiring 40% of three forestry enterprises, PIK-89, Tubales and Tubalesprom, located in Ust Ilimsk for $10.9 million. The companies combined annual allowance cut of round wood amounts to about 1 million cubic meters and the annual harvesting to some 750,000 cubic meters. The acquisition includes three sawmills with an output of some 120,000 cubic meters annually. Regarding the other investments included in the Vostok Nafta call option agreement, Varyag Resources has agreed with Vostok Nafta that it will pursue the Russkaya Gornaya Kompaniya aggregate project on its own. Varyag Resources is currently finalizing an agreement. Varyag Resources said it will continue the discussions with Trans-Nafta in order to provide funding for development of Trans-Nafta's upstream gas business. Further work on the Iskra coal project has been suspended until Iskra's coal mining and exploration license is resolved to the company's satisfaction, the company said.