Dec 29, 2005. /Lesprom Network/. Abitibi-Consolidated Inc. announced on Wednesday that it has completed the sale of its privately owned timberlands located near Thunder Bay, Ontario to North Star Forestry Ltd., a subsidiary of Wagner Forest Management Ltd. The timberlands compromise approximately 196 000 hectares (or about 485 000 acres). The company currently intends to use the CAD 55 million proceeds from this sale to reduce indebtedness and for other general corporate purposes. National Bank Financial has acted as financial advisor to the company for this transaction. In light of the fact the Fort William paper mill has not been sold, it remains subject to the ongoing in-depth operational review. The objective is to improve mill's performance and cost structure to ensure a long-term cost competitive operation. Abitibi-Consolidated is a leading producer of newsprint and commercial printing papers as well as a major supplier of wood products. Committed to the sustainable forest management of more than 40 million acres through third-party certification, the company supplies customers in 70 countries from its 45 operating facilities. Abitibi-Consolidated is also the largest recycler of newspapers and magazines in North America.