|By Marketwired .||
|February 28, 2014 05:06 PM EST||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 02/28/14 -- Canfor Corporation (TSX: CFP) announced today that it has entered into a letter of intent with Groupe Lebel Inc. to sell the Daaquam sawmill located in Saint-Just-de-Bretenieres, Quebec. The transaction is expected to close at the end of March, 2014 and is subject to customary closing conditions, including the execution of a formal agreement. The Daaquam mill produced 120 million board feet of lumber in 2013.
Don Kayne, CEO of Canfor said, "Daaquam was sold because it was not core to our Western Canadian operations. Groupe Lebel is a well respected company and Daaquam is a good strategic fit for it. We wish Groupe Lebel and all the employees of the Daaquam mill good luck in the future."
The proceeds of sale of the Daaquam sawmill and working capital combined with the sale of other associated properties related to Daaquam to other third parties are expected to amount to approximately $25 million.
Forward Looking Statements
Certain statements in this press release constitute "forward-looking statements" which involve known and unknown risks, uncertainties and other factors that may cause actual results to be materially different from any future results, performance or achievements expressed or implied by such statements. Words such as "expects", "anticipates", "projects", "intends", "plans", "will", "believes", "seeks", "estimates", "should", "may", "could", and variations of such words and similar expressions are intended to identify such forward-looking statements. These statements are based on management's current expectations and beliefs and actual events or results may differ materially. There are many factors that could cause such actual events or results expressed or implied by such forward-looking statements to differ materially from any future results expressed or implied by such statements. Forward-looking statements are based on current expectations and Canfor and the Purchaser assume no obligation to update such information to reflect later events or developments, except as required by law.
Canfor is a leading integrated forest products company based in Vancouver, British Columbia (BC) with operations in BC, Alberta, North and South Carolina and Alabama. Canfor produces primarily softwood lumber, and also produces bleached chemi-thermo-mechanical pulp and specialized wood products. Canfor also owns a 50.4% interest in Canfor Pulp Products Inc., which is one of the largest producers of northern softwood kraft pulp in Canada and a leading producer of high performance kraft paper. Canfor shares are traded on the Toronto Stock Exchange under the symbol CFP.