Eacom Timber enters into purchase agreements with PwC for acquisition of Northern Sawmills and Atikokan Forest Products assets in Thunder Bay and Atikokan, Ontario; Atikokan deal subject to confirmation of wood allocation
MONTREAL and VANCOUVER, British Columbia
May 2, 2011
– EACOM Timber Corporation (TSXV: ETR) ("EACOM", or the "Company") announced today that it has entered into asset purchase agreements with PricewaterhouseCoopers Inc., in its capacity as court-appointed receiver of each of Northern Sawmills Inc. and Atikokan Forest Products Ltd. The potential transactions are subject to a number of conditions in favour of EACOM, including due diligence, necessary approvals from third parties and court approval. The Atikokan asset purchase agreement is also subject to confirmation of the wood allocation. Part of the proceeds from the recent financing will be used to pay the purchase price for the Northern and Atikokan assets. These assets are located respectively in Thunder Bay and Atikokan, Ontario.
"We continue to look for opportunities to expand our operations in Ontario. If acquired, the Atikokan assets provide the Company with an opportunity to expand its random length lumber business in Ontario. The Northern assets may be used to increase productivity and lower costs in our Ontario and Quebec sawmills. They also provide an opportunity to further expand into value added products'', said Mr. Rick Doman, President and CEO of EACOM.
EACOM Timber Corporation is a TSX-V listed company. EACOM owns seven sawmills and an equity interest in an eighth sawmill, all located in Eastern Canada, and related tenures. The mills are Timmins, Nairn Centre, Gogama and Ear Falls in Ontario, and Val-d'Or, Ste-Marie and Matagami in Quebec. The equity interest is in the Elk Lake sawmill located in Ontario. The sawmills in Ear Falls, Ontario, and Ste-Marie, Quebec, are currently idled. EACOM also owns one idled mill in Big River, Saskatchewan, a remanufacturing facility and a 50% interest in an "I" joist plant.
The TSX Venture Exchange has neither approved nor disapproved the content of this press release. All director and officer appointments are subject to TSX Venture Exchange approval.