EACOM Timber completes purchase of the Big River sawmill
Jan 06, 2010. EACOM Timber Corporation has completed its purchase of the Big River sawmill in Saskatchewan following TSX Venture approval of the acquisition. The sawmill was purchased from Domtar Pulp and Paper Products Inc., a subsidiary of Domtar Corp.
Jan 06, 2010. /Lesprom Network/. EACOM Timber Corporation has completed its purchase of the Big River sawmill in Saskatchewan following TSX Venture approval of the acquisition, the company said in a press release received by Lesprom Network. The sawmill was purchased from Domtar Pulp and Paper Products Inc., a subsidiary of Domtar Corp.
The Big River sawmill has been idle since 2006 following the closure of the Prince Albert pulp and paper mill. The sawmill underwent significant capital upgrades in 2000 and currently has an estimated maximum production capacity of 250 million board feet annually.
EACOM purchased the sawmill for $3 million on an "as is where is" basis and has assumed Domtar's environmental obligations which involve the ongoing site monitoring and future site remediation, if and when required.
The start-up of operations at Big River will depend on, among other things, EACOM securing a timber supply on terms acceptable to EACOM. EACOM has not secured a timber supply to operate the mill, and there is no assurance that EACOM will be able to secure a timber supply in the future. EACOM plans to pursue other alternatives for the mill if it cannot negotiate a timber supply, on acceptable terms, in Saskatchewan. If not there may be other regions in Canada that may have timber available and EACOM would have to consider moving the sawmill to a region with available timber.