EACOM Timber Corporation Approves USNR To Rebuild Timmins Mill

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EACOM Timber Corporation is pleased to announce that the Board has approved entering into an agreement with USNRKockums Cancar Inc. to rebuild the Timmins Mill. The total cost of the project is estimated at $25 million, a substantial portion of which is being funded from proceeds of insurance related to a fire.a

As reported in January of this year, the mill located in Timmins Ontario was destroyed by fire. To date the Company has received $23,700,000 of insurance proceeds, $13,700,000 related to business interruption and $10,000,000 for damage or destruction of assets.

Eacom has also completed its capital project on the sawline at the Elk Lake facility. The mill has been restarted and expected to operate at full production in January 2013.

“We are continuing our capital expenditure program designed to increase productivity and capacity at our mills to reduce manufacturing costs. The rebuild of Timmins has also been designed to provide for improved productivity. Lumber markets have improved and continue to contribute to the overall performance of the Company” commented Rick Doman, President and CEO of the Company.

From EACOM Timber Corporation: eacom.ca.

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