Conifex Timber Concludes Sale of Fort St. James Sawmill

SEATTLE (Scrap Monster): Vancouver, B.C-based Conifex Timber Inc. announced that it has closed sale of its Fort St. James sawmill and associated forest license to Hampton Lumber. The consideration for the transaction, after necessary adjustments, was approximately $38.6 million, said the company press release.

The announcement comes days after the deal received approval from the B.C. provincial government. It must be noted that the companies had signed a definitive agreement on sale of the mill earlier in June this year.

Meantime, Hampton Lumber plans to build a new sawmill on the acquired site, which is expected to become operational in 2022. It will focus on designing a new sawmill in the coming months. It plans to auction off most of the sawmill assets and start preparing the site for construction activities, which are expected to commence next year.

Steve Zika, CEO stated that the company is excited to expand its B.C. operations. The long-term investment is based on hopes of conducive future business climate. The company hopes to create a sustainable business with the cooperation of the First Nations, community and the provincial administration.