TLA'AMIN TERRITORY (News release) -- Western Forest Products Inc. and Qwoqwnes Forestry Holdings Limited Partnership, an entity beneficially owned and controlled by Tla'amin Nation ("Qwoqwnes"), have reached an agreement for the purchase by Qwoqwnes of a 100% ownership interest in the assets comprising Western's Stillwater Forest Operation, located near Powell River, British Columbia ("BC"), for an aggregate purchase price of $80.0 million (the "Transaction").
The Stillwater Forest Operation includes Block 1 of Tree Farm Licence 39 ("TFL 39 Block 1") which covers approximately 154,000 hectares of forest land, the majority of which is located in the traditional territory of Tla'amin Nation. Subject to closing of the Transaction, Qwoqwnes, through the business of Thichum Forest Products, will manage an allowable annual cut of approximately 469,200 cubic metres of timber from TFL 39 Block 1 and will enter into a long-term fibre supply agreement with Western to sell timber harvested from the tenure to Western to support Western's BC coastal manufacturing operations. To ensure a seamless transition, Western will provide certain transition services to Qwoqwnes following closing of the Transaction.
The completion of the Transaction is subject to various closing conditions, including financing, and subdivision and tenure transfer approvals from the Ministry of Forests (BC). Western and Qwoqwnes are working towards closing the Transaction this year.
"This acquisition brings another 43% of Tla'amin territory back under our stewardship and control," said Tla'amin Hegus and Economic Development Board member John Hackett. "We look forward to reconnecting with this vast part of our territory and managing the lands according to Tla'amin teachings and values and for the benefit of future generations."
"This acquisition is a strong fit with our Quadruple Bottom Line approach and sets Thichum up for long-term success. It means value-added manufacturing in the community, good local jobs, and stronger economic returns for the region. At the same time, it reinforces our commitment to environmental stewardship, community well-being, and respecting our cultural responsibilities to the land. We see this as an investment in our business and in the future of our community," said Adam Culos, General Manager, Thichum Forest Products.
"This announcement represents another significant step forward in Western's commitment to forging mutually beneficial business relationships that align our business needs with the stewardship and economic development aspirations of Indigenous communities," said Steven Hofer, Western's President and CEO. "The transaction will support executing our strategy and continued focus on accelerating the transition to higher value products manufacturing while maintaining a strong balance sheet through challenging operating conditions. We look forward to working with Tla'amin Nation and Qwoqwnes as we proceed with this new phase of our relationship."
