Vancouver, British Columbia, Canada, 12 August 2010 -- (Marketwire) -- Western Forest Products Inc. (TSX:WEF - News) has completed the sale of certain non-core properties to the Capital Regional District of Victoria, British Columbia, at the purchase price of CAD 18.8 million.
The sale, which was previously announced on 17 March 2010, includes properties in the southern portion of Vancouver Island, encompassing approximately 2350 hectares within the company's Jordan River, Sooke Potholes, and Weeks Lake holdings.
The payment schedule requires CAD 9.4 million due on 12 August 2010, CAD 3.3 million on 12 August 2011, and CAD 6.1 million on 12 August 2012. The net proceeds from the sale will be used to pay down the company's debt in accordance with its lending agreements. As a condition of sale on two parcels valued at CAD 4.5 million, the company must secure a certificate of compliance on an environmental remediation project under way. The company has until 12 August 2012 to secure that certificate.
Western is an integrated Canadian forest products company and the largest coastal British Columbia woodland operator and lumber producer. The company has an annual available harvest of approximately 7.4 million cubic meters of timber, of which approximately 7.1 million cubic meters is from Crown lands, and lumber capacity in excess of 1.5 billion board feet from eight sawmills and four remanufacturing plants. Principal activities conducted by the company include timber harvesting, reforestation, sawmilling logs into lumber and wood chips, and value-added remanufacturing. Substantially all of Western's operations, employees and corporate facilities are located in the coastal region of British Columbia; its products are sold in more than 25 countries worldwide.