Canfor to Sell Mackenzie Assets for $70 Million
Canfor Corporation has entered into a Letter of Intent with McLeod Lake Indian Band and Tsay Keh Dene Nation to sell its forest tenure in the Mackenzie region of British Columbia (“BC”) and a separate agreement with Peak Renewables to sell its Mackenzie site, plant and equipment for a combined price of $70 million.
Canfor, McLeod Lake Indian Band and Tsay Keh Dene Nation intend to work towards a definitive agreement for the sale of the forest tenure and will seek approval from the BC Minister of Forests, Lands, Natural Resource Operations and Rural Development for the tenure transfer.
“We are very pleased that the sale of the Mackenzie tenure will provide an opportunity for the McLeod Lake Indian Band and Tsay Keh Dene Nation to grow their leadership in the forest economy and advance Nation stewardship values for the benefit of their communities,” said Don Kayne, President & CEO, Canfor.
Chief Pierre of the Tsay Keh Dene Nation stated “First Nations in BC have been relegated to marginal roles in the forest sector for far too long. The Letter of Intent signed with Canfor has the potential to dramatically change this imbalance within the Mackenzie Timber Supply Area.” Chief Pierre also noted that “with further work and agreements the Letter of Intent provides a clear path for the eventual transfer to and subdivision of the forest tenure between McLeod Lake Indian Band and Tsay Keh Dene.”
Chief Chingee of the McLeod Lake Indian Band stated “As stewards of our ancestral territory, we, the People of the Rocks, are pleased to be acquiring this forestry tenure within our Territory. This purchase represents an important opportunity for us to continue our work towards economic stability and prosperity for our members, communities and business partners, all while ensuring careful and responsible stewardship of our sacred environment in accordance with our Tse’khene laws, customs and traditional knowledge.”
For many years, Canfor has collaborated with the McLeod Lake Indian Band and Tsay Keh Dene Nation, to advance relationships and support Nation stewardship and natural resource development goals. The tenure agreement will provide both Nations with greater oversight of and control over resource development activities within their traditional territories. In addition, this agreement supports ongoing reconciliation efforts and is strongly aligned with the Government of BC’s Intentions Paper.
About Canfor Corporation
Canfor is a leading integrated forest products company based in Vancouver, British Columbia (“BC”) with interests in BC, Alberta, North and South Carolina, Alabama, Georgia, Mississippi, Arkansas and Louisiana, as well as in Sweden with 70% interest in Vida Group. Canfor produces primarily softwood lumber and also owns a 54.8% interest in Canfor Pulp Products Inc., which is one of the largest global producers of market Northern Bleached Softwood Kraft Pulp and a leading producer of high performance kraft paper. Canfor shares are traded on The Toronto Stock Exchange under the symbol CFP. For more information visit canfor.com.
Pat Elliott – CFO and SVP, Sustainability – Patrick.Elliot@canfor.com – (604) 661-5441
Source: Canfor Corporation