Québec and Vancouver, British Columbia – EACOM
Timber Corporation (ETR: TSX-V) (“EACOM”, or the “Company”) announced today
that it has entered into asset purchase agreements with PricewaterhouseCoopers
Inc., in its capacity as court-appointed receiver of each of Northern Sawmills Inc.
and Atikokan Forest Products Ltd. The potential transactions are subject to a
number of conditions in favour of EACOM, including due diligence, necessary
approvals from third parties and court approval. The Atikokan asset purchase
agreement is also subject to confirmation of the wood allocation. Part of the
proceeds from the recent financing will be used to pay the purchase price for the
Northern and Atikokan assets. These assets are located respectively in Thunder Bay
and Atikokan, Ontario.
“We continue to look for opportunities to expand our operations in Ontario. If
acquired, the Atikokan assets provide the Company with an opportunity to expand
its random length lumber business in Ontario. The Northern assets may be used to
increase productivity and lower costs in our Ontario and Quebec sawmills. They also
provide an opportunity to further expand into value added products’’, said Mr. Rick
Doman, President and CEO of EACOM.
EACOM Timber Corporation is a TSX-V listed company. EACOM owns seven sawmills
and an equity interest in an eighth sawmill, all located in Eastern Canada, and
related tenures. The mills are Timmins, Nairn Centre, Gogama and Ear Falls in
Ontario, and Val-d’Or, Ste-Marie and Matagami in Quebec. The equity interest is in
the Elk Lake sawmill located in Ontario. The sawmills in Ear Falls, Ontario, and Ste-
Marie, Quebec, are currently idled. EACOM also owns one idled mill in Big River,
Saskatchewan, a remanufacturing facility and a 50% interest in an “I” joist plant.
The TSX Venture Exchange has neither approved nor disapproved the content of
this press release. All director and officer appointments are subject to TSX Venture
All statements in this news release that are not based on historical facts are
“forward-looking statements.” While management has based any forward-looking
statements contained herein on its current expectations, the information on which
such expectations were based may change. These forward-looking statements rely
on a number of assumptions concerning future events and are subject to a number
of risks, uncertainties, and other factors, many of which are outside of our control
that could cause actual results to materially differ from such statements. Such
risks, uncertainties, and other factors include, but are not necessarily limited to,
those set forth under the captions “Risk Factors” of the Filing Statement dated
January 8, 2010 and the current MD&A for EACOM Timber Corporation on file with
the Canadian Securities Commissions.
Executive Vice-President and Chief Financial Officer