ABWTQ -- Sale of Mackenzie Assets
Sorry, I missed the original news on this one.
Can anyone confirm how many $$ (dollars) are coming back to Abitibi. Conifex raised $89 Million, but some are for general corporate purposes? (Below).
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VANCOUVER, BRITISH COLUMBIA, Jun 03, 2010 (MARKETWIRE via COMTEX) -- Conifex Timber Inc. ("Conifex"), formerly West Fourth Capital Inc. ("Fourth"), announced today that it has completed the acquisition of certain sawmill and related assets located at or near Mackenzie, British Columbia as well as a related equity financing and an arrangement (the "Arrangement") with DTR Wood Acquisitionco Ltd. ("DTR"). The common shares of Conifex are expected to commence trading on the TSX Venture Exchange (the "TSXV") at the open of the market on June 8, 2010 under the new trading symbol "CFF".
The sawmills and other assets ("the Mackenzie Assets") were acquired from Abitibi- Consolidated Company of Canada and its affiliate. The Mackenzie Assets included two sawmills, including planer mills, with a combined annual production capacity of 445 million board feet of lumber on a two-shift basis, a forest licence with an annual allowable cut of approximately 932,500 cubic metres, a steam/power plant and associated turbine and boiler, and a paper mill (excluding the headbox). Conifex intends to dispose of the paper mill assets but will retain the power generation assets.
Conifex CEO Ken Shields stated: "We are pleased to have secured a fibre and manufacturing base in Mackenzie with such exciting future potential. Now that Sinar Mas has purchased and plans to restart the idled NBSK pulp mill in Mackenzie, we look forward to working with the pulp mill and other stakeholders on a priority basis to develop an operating plan which will enable us to resume harvesting and manufacturing operations on a timely basis."
In connection with the acquisition of the Mackenzie Assets, DTR completed a private placement for gross proceeds of approximately $89 million. The private placement consisted of the sale of subscription receipts that were subsequently exchanged for shares from treasury. In addition to the purchase of the Mackenzie Assets, Conifex intends to use the funds from the financing to support a capital expenditure program, working capital and for general corporate purposes.
