MONTRÉAL and VANCOUVER, Dec. 12, 2012 /CNW Telbec/ - EACOM Timber
Corporation (TSXV: ETR) ("EACOM", or the "Company") is pleased to
announce that the Board has approved entering into an agreement with
USNRKockums Cancar Inc.,("USNR") 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. 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
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.
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, and operations in Val-d'Or and
Matagami which had been temporarily shut down due to weak market
conditions will be resuming in the third quarter. The mill in Timmins
was seriously damaged by fire in January 2012 and remains shut down due
to the fire. EACOM also owns a lumber remanufacturing facility in
Val-d'Or, Quebec, and a 50% interest in an "I" joist plant in Sault
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.
Additional information relating to EACOM is available at www.eacom.ca and on SEDAR at www.sedar.com.
For further information:
Executive Vice-President and Chief Financial Officer
(514) 395-0375 ext. 259