Montréal, Québec and Vancouver, British Columbia – EACOM Timber Corporation (ETR: TSX-V) (“EACOM”, or the “Company”) announced today that it has entered into an asset purchase agreement with Liskeard Lumber Limited to acquire the remaining one-third of the Elk Lake sawmill for a cash consideration of approximately $15 million. EACOM currently owns two-thirds of the mill. The transaction is subject to a number of customary closing conditions, and closing is expected on July 31, 2011. Part of the proceeds from the recent financing will be used to pay the purchase price. The Elk Lake sawmill is located near Elk Lake, Ontario.
“We are pleased to add the full Elk Lake sawmill facility to our operations. It allows us to combine our assets to reduce costs and achieve better productivity. The addition also provides an opportunity to expand our random length lumber business in Ontario,” said Mr. Rick Doman, President and CEO of EACOM. “We have had a good partner in John Wilson at Liskeard Lumber and wish him the best”.
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 Exchange approval.
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, which 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 of the current MD&A for EACOM Timber Corporation on file with the Canadian Securities Commissions.
Executive Vice‐President and Chief Financial Officer
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