EACOM Timber Corporation To Acquire Remaining One-Third of the Elk Lake Sawmill
14 May 2011 - 6:05AM
PR Newswire (Canada)
MONTREAL and VANCOUVER, May 13 /CNW/ -- MONTREAL and VANCOUVER, May
13 /CNW Telbec/ - EACOM Timber Corporation (TSXV: ETR) ("EACOM", or
the "Company") announced today that it has entered into an asset
purchase agreement with Liskeard Lumber Limited to acquire the
remaining one-third of the Elk Lake sawmill for a cash
consideration of approximately $15 million. EACOM currently owns
two-thirds of the mill. The transaction is subject to a number of
customary closing conditions, and closing is expected on July 31,
2011. Part of the proceeds from the recent financing will be used
to pay the purchase price. The Elk Lake sawmill is located near Elk
Lake, Ontario. ''We are pleased to add the full Elk Lake sawmill
facility to our operations. It allows us to combine our assets to
reduce costs and achieve better productivity. The addition also
provides an opportunity to expand our random length lumber business
in Ontario," said Mr. Rick Doman, President and CEO of EACOM. "We
have had a good partner in John Wilson at Liskeard Lumber and wish
him the best". About 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.
Forward-Looking Statements All statements in this news release that
are not based on historical facts are "forward-looking statements."
While management has based any forward-looking statements contained
herein on its current expectations, the information on which such
expectations were based may change. These forward-looking
statements rely on a number of assumptions concerning future events
and are subject to a number of risks, uncertainties and other
factors, many of which are outside of our control, which could
cause actual results to materially differ from such statements.
Such risks, uncertainties and other factors include, but are not
necessarily limited to, those set forth under the captions "Risk
Factors" of the Filing Statement dated January 8, 2010 and of the
current MD&A for EACOM Timber Corporation on file with the
Canadian Securities Commissions. To view this news release in HTML
formatting, please use the following URL:
http://www.cnw.ca/en/releases/archive/May2011/13/c4535.html p
bInvestors:/bbr/ Marc Girardbr/ Executive Vice-President and Chief
Financial Officerbr/ (514) 848-5133 /p p align="justify" bMedia
Relations:/bbr/ Frédéric Bérardbr/ HKDPbr/ (514) 917-1040 /p
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