Canfor, the Vancouver, British Columbia-based lumber and pulp producer reported that it has reached multi-year agreements with Peak Renewables involving the sale of the company’s forest tenure in the Fort Nelson region of British Columbia.
Peak Renewables manufactures wood pellets.
The agreements are valued at 30 million Canadian dollars (US$22.96 million).
The transactions are subject to customary closing conditions, including approval from the British Columbia Minister of Forests. Closing of the deal is expected to occur in the first quarter of 2021.
The agreements follow Peak Renewables’ purchase of Canfor’s Fort Nelson mill assets in the third quarter of 2020.
“I am pleased to have reached an agreement to sell our Fort Nelson tenure to Peak Renewables, a company that is committed to developing a long term plan to rejuvenate the forest industry in the region,” said Don Kayne, president and CEO, Canfor.