Canfor announced Tuesday that it has reached multi-year $30-million agreements with Peak Renewables involving the sale of its forest tenure in the Fort Nelson region.
Canfor says the transactions are subject to customary closing conditions, including approval from the BC Minister of Forests. Closing is expected to occur in the first quarter of 2021.
The agreements follow Peak Renewables’ purchase of Canfor’s Fort Nelson mill assets in the third quarter of 2020.
“I am pleased to have reached an agreement to sell our Fort Nelson tenure to Peak Renewables, a company that is committed to developing a long term plan to rejuvenate the forest industry in the region,” said Canfor President and CEO Don Kayne.
Fort Nelson Mayor Gary Foster says he's feeling hopeful about the agreement.
“The transfer of this long-idle timber license to Peak Renewables has the potential to improve regional economic stability and prosperity, and their partnership with Fort Nelson First Nation puts forward a sustainable operating model, utilizing deciduous fibre that has been classified as less desirable until now,” said Foster in a statement.
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