Canfor Receives Govt. Nod for Transfer of Forest Tenure to Interfor

SEATTLE (Scrap Monster): Canfor Corporation welcomed the decision by the B.C. provincial administration to approve the transfer of the Vavenby forest tenure to Interfor. With the announcement by the Honourable Doug Donaldson, Minister of Forests, Lands, Natural Resource Operations and Rural Development, Interfor will acquire cutting rights in the Adams Lake area of the B.C. Interior.

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Don Kayne, president and CEO, Canfor noted that the company is pleased that Premier Horgan and Minister Donaldson have approved the transfer of forest tenure associated with the Vavenby mill to Interfor. The decision demonstrates the ongoing government support to the Interior forest sector which continues to reduce production capacity to align with timber supply. The proposed sale of the Vavenby mill site offers opportunities for significant economic activities in the region and employment in the local communities, he added.

Also, Kayne added that the agreement with Interfor is expected to close before the end of first quarter this year.

In related news, Interfor has announced additional long-term debt financing of $50 million, thus making the total to $100 million, including the $50 million announced on February 18, 2020. The financing is expected to close before end-March, the proceeds of which will be used for general corporate purposes.