EACOM Timber approves USNR to rebuild Timmins mill and announces completion of Elk Lake upgrades

Dec 13, 2012. /Lesprom Network/. EACOM Timber's Board has approved entering into an agreement with USNRKockums Cancar Inc., ("USNR") to rebuild the Timmins mill in Canada, as the company said in the press release received by Lesprom Network. The total cost of the project is estimated at $25 million, a substantial portion of which is being funded from proceeds of insurance related to a fire. As reported in January of this year, the mill located in Timmins Ontario was destroyed by fire. To date the Company has received $23.7 million of insurance proceeds, $13.7 million related to business interruption and $10 million for damage or destruction of assets. Eacom has also completed its capital project on the sawline at the Elk Lake facility. The mill has been restarted and expected to operate at full production in January 2013. "We are continuing our capital expenditure program designed to increase productivity and capacity at our mills to reduce manufacturing costs. The rebuild of Timmins has also been designed to provide for improved productivity. Lumber markets have improved and continue to contribute to the overall performance of the Company," commented Rick Doman, President and CEO of the Company. The business activities of EACOM Timber Corporation consist of the manufacturing, marketing and distribution of lumber, wood chips and wood-based value-added products, and the management of forest resources. EACOM owns eight sawmills, all located in Eastern Canada, and related tenures.