TORONTO, April 22,
2022 /CNW/ - GreenFirst Forest Products Inc. (TSX:
GFP) ("GreenFirst" or the "Company") is pleased to announce that
the Government of Ontario has
announced that it is prepared to offer a loan of up to $17.2M (the "Loan Facility") to support the
Company's plan to relocate and redevelop the Kenora sawmill over the next 3.5 years.
Completion of the Loan Facility is subject to due diligence and
negotiation of binding agreements.
If completed, the Company would be able to draw down on the Loan
Facility to cover 20% of its eligible project expenditures provided
that the Company meets certain performance parameters including but
not limited to job-creation targets and other project
milestones.
This strategic relocation would open the necessary expansion
opportunities to ensure the mill is viable and sustainable. The
Company has identified potential locations for a new mill site
within the City of Kenora. In
doing so, the company would keep jobs in Kenora and could encourage full-time residents
to move back to Kenora. All
production from the relocated Kenora sawmill is expected to supply the
Canadian market as well as the export market in the United Kingdom.
The Company purchased the sawmill out of receivership on
October 5, 2020. GreenFirst owns the
facility and associated assets, which include 114 acres of land on
the shores of the Lake of the
Woods. The present site has limitations for sawmill
development, and it is beneficial for the Company to
relocate.
"Kenora is one of the most
picturesque towns in Northern
Ontario. We thank Minister Rickford and the Ontario government for their offer of support
to relocate the mill," said Paul
Rivett, Chairman of GreenFirst Forest Products. "The land
value as a well-planned development far exceeds its value as a
sawmill site. We believe the relocation of the mill will unlock the
land for redevelopment that would become a source of pride for the
community."
"The future of the forest sector depends on building success
through local projects with big impacts," said Greg Rickford, Minister of Northern Development,
Mines, Natural Resources and Forestry. "By offering to invest in
GreenFirst Forest Products, we're creating local jobs and investing
in prosperity in Kenora – ensuring
a strong and prosperous forest sector which can provide for
communities across Northern
Ontario."
About GreenFirst
GreenFirst Forest Products is a forest-first business, focused
on sustainable forest management and lumber production. The Company
owns 7 sawmills and 1 paper mill across Ontario and Quebec. GreenFirst is a significant lumber
producer in Canada having an
annual lumber production capacity of 905MMfbm, with a goal to
increase. GreenFirst's mills are located in rich wood baskets
proudly operating over 9.2 million hectares of FSC®
certified public and private Canadian forestlands
(FSC®-C167905). The Company believes that responsible
forest practices, coupled with the long-term green advantage of
lumber, provide GreenFirst with significant cyclical and secular
advantages in building products. GreenFirst's long-term vision is
to be a leader in the global forestry industry.
Forward Looking Information
Certain information in this news release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact are forward-looking statements.
Forward looking statements are often identified by terms such as
"may", "should", "anticipate", "expect", "potential", "believe",
"intend", "estimate" or the negative of these terms and similar
expressions. Forward-looking statements are based on certain
assumptions and, while GreenFirst considers these assumptions to be
reasonable, based on information currently available, they may
prove to be incorrect. In addition, forward-looking statements
necessarily involve known and unknown risks, including those set
out in GreenFirst's public disclosure record filed under its
profile on www.sedar.com. Readers are further cautioned not to
place undue reliance on forward-looking statements as there can be
no assurance that the plans, intentions or expectations upon which
they are placed will occur. Such information, although considered
reasonable by management at the time of preparation, may prove to
be incorrect and actual results may differ materially from those
anticipated. Forward-looking statements contained in this news
release are expressly qualified by this cautionary statement and
reflect our expectations as of the date hereof, and thus are
subject to change thereafter. GreenFirst disclaims any intention or
obligation to update or revise any forward-looking statements,
whether as a result of new information, future events or otherwise,
except as required by law.
SOURCE GreenFirst Forest Products Inc.