EACOM Timber Corporation Provides an Update on its Timmins Mill
MONTREAL and VANCOUVER, Feb. 26, 2013 /CNW Telbec/ - EACOM Timber Corporation (TSXV: ETR) ("EACOM", or the "Company") announced that it has concluded with its insurer the negotiation of a global settlement in the amount of $48,250,000 in respect of the fire that occurred at its Timmins mill in January 2012. As at September 30, 2012, the Company had received $23,700,000 of insurance proceeds, of which $13,700,000 related to business interruption and $10,000,000 for damage or destruction of assets. During the fourth quarter, the Company collected a further $6,900,000 in respect of business interruption. The Company received today the remaining proceeds of $17,400,000.
The Timmins mill is currently under reconstruction which is expected to be completed in the summer of 2013.
EACOM Timber Corporation is a TSX-V listed company. The business activities of EACOM consist of the manufacturing, marketing and distribution of lumber, wood chips and wood-based value-added products, and the management of forest resources. EACOM owns eight sawmills, all located in Eastern Canada, and related tenures. The mills are Timmins, Nairn Centre, Gogama, Elk Lake and Ear Falls in Ontario, and Val-d'Or, Ste-Marie and Matagami in Quebec. The mills in Ear Falls, Ontario and Ste-Marie, Quebec are currently idled. The mill in Timmins was seriously damaged by fire in January 2012 and remains shut down. EACOM also owns a lumber remanufacturing facility in Val-d'Or, Quebec, and a 50% interest in an "I" joist plant in Sault Ste-Marie, Ontario.
The TSX Venture Exchange has neither approved nor disapproved the content of this press release. All director and officer appointments are subject to TSX Venture Exchange approval.
All statements in this news release that are not based on historical facts are "forward-looking statements". While management has based any forward-looking statements contained herein on its current expectations, the information on which such expectations were based may change. These forward-looking statements rely on a number of assumptions concerning future events and are subject to a number of risks, uncertainties and other factors, many of which are beyond our control and could cause actual results to materially differ from such statements. Such risks, uncertainties and other factors include, but are not necessarily limited to, those set forth under "RISKS AND UNCERTAINTIES" in the Company's current MD&A, and under "RISK FACTORS" in the Company's Filing Statement dated January 8, 2010.
SOURCE: EACOMFor further information:
Executive Vice-President and Chief Financial Officer
(514) 395-0375 ext. 259