Western Forest Products to Sell Stillwater Forest Operation to Tla’amin Nation

On Friday, Western Forest Products Inc. and Qwoqwnes Forestry Holdings Limited Partnership, an entity beneficially owned and controlled by Tla’amin Nation, reached an agreement for Qwoqwnes to purchase a 100% ownership interest in the assets comprising Western’s Stillwater Forest Operation near Powell River, BC, for CA$80.0 million (US$58.5 million).

The Stillwater Forest Operation includes Block 1 of Tree Farm License 39, which covers approximately 154,000 hectares (381,000 acres) of forest land, the majority of which is located within the traditional territory of Tla’amin Nation.

Subject to closing, Qwoqwnes, through Thichum Forest Products, will manage an allowable annual cut of approximately 469,200 cubic meters of timber from TFL 39 Block 1. Qwoqwnes will also enter into a long-term fiber supply agreement with Western to sell timber harvested from the tenure to support Western’s BC coastal manufacturing operations. Western will provide certain transition services following closing to ensure a seamless transition.

Completion of the transaction is subject to customary closing conditions, including financing, subdivision, and tenure transfer approvals from the BC Ministry of Forests. The parties are working toward closing the transaction this year.