Conifex Timber Inc. of Vancouver, Canada, said Thursday that it is buying the former Georgia-Pacific sawmill south of El Dorado.
The statement said Conifex has completed the purchase of the outstanding shares and shareholder loans of a private Delaware company. The consideration consisted of 100,000 common shares of the company at a deemed price of $6.75 Canadian dollars, as well as the reimbursement of certain costs previously incurred by the vendor.
The Delaware company had the exclusive rights to acquire the sawmill and related facilities and equipment, including approximately 186 acres of land.
Along with the closing of the purchase, the Delaware company exercised its right to acquire the El Dorado mill for total consideration of $21 million United States dollars, comprised of $12.36 million in cash and an $8.64 million vendor mortgage.
Ken Shields, chief executive officer of Conifex commented, “It’s important to Conifex to secure this ideal site and high quality infrastructure in one of the most advantaged softwood supply regions in North America.”