New York, New York, USA, 30 January 2009 -- (GLOBE NEWSWIRE) -- Mercer International Inc. (Nasdaq:MERC) (TSX:MRI.U) announced today that it has finalized an Energy Purchase Agreement (EPA) with BC Hydro for the sale of electricity from its Castlegar mill. The EPA is the culmination of the company's proposal submitted under BC Hydro Power and Authority's competitive bioenergy call for power. The company's proposal was selected by BC Hydro in December 2008, subject to finalization of the EPA.
Under the EPA, the company will supply a minimum of approximately 238,000 Megawatt hours (MWh) of electrical energy annually to BC Hydro over a 10-year term, with deliveries estimated to commence in the first quarter of 2010. Earlier this year, Celgar commenced upgrades to its generation facilities, which will include the installation of a 48 MW condensing turbine, that will bring Celgar's installed generating capacity up to 100 MW. These upgrades will bring the Canadian mill up to the world class energy generation levels of the company's German operations.
The company also announced today that it has reached agreement with CIT Business Credit Canada Inc. (CIT) to extend the maturity date of its CAD 40 million revolving term credit facility with CIT from 19 May 2009 to 19 May 2010. The credit agreement provides for a maximum CAD 40 million revolving line of credit in favor of the company's subsidiary, Zellstoff Celgar Limited Partnership, subject to borrowing base and availability reserve restrictions.
Mercer International Inc. is a global pulp manufacturing company. To obtain further information on the company, visit http://www.mercerint.com