Canfor has announced it has reached multi-year $30-million agreements with Peak Renewables involving the sale of the company’s forest tenure in the Fort Nelson region of British Columbia. 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.
It’s all part of Peak Renewables’s plan to build a new, 600,000 ton-per-year pellet plant in the region.
“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 Don Kayne, president and CEO, Canfor.