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Horizon North Logistics Inc. Announces Conditional Award of Camp Service Contract


News provided by

Horizon North Logistics Inc.

Apr 09, 2018, 09:00 ET

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CALGARY, April 9, 2018 /CNW/ - Horizon North Logistics Inc. ("Horizon North" or the "Corporation") (TSX: HNL.TO) announced today that its Industrial Services division, through the Halfway River Horizon North Camp Services Limited Partnership ("Halfway River Horizon North"), has been granted a conditional award for the provision of full turn-key camp facilities and services in the North Montney region of northeast British Columbia.

The conditional award provides for the construction of two new workforce accommodations facilities of 575 and 610 beds respectively and the utilization of Horizon North's existing Kobes Creek Lodge open camp. The conditions of the award include external regulatory approvals, customer internal approvals, and agreement on final contract terms between the customer and Halfway River Horizon North.

Revenue for the full term of the award is expected to be $63 million over the period of August 2018 to November 2019. The two new facilities and an expansion of Kobes Creek Lodge will be comprised entirely of existing fleet. The capital required primarily to install and mobilize the facilities is included in the Corporation's existing 2018 capital plan.

"This conditional award pairs Horizon North's presence as the largest open camp provider in the Montney region with our dedication to strong partnerships with Aboriginal communities," says Rod Graham, President and Chief Executive Officer of Horizon North. "We look forward to continuing our work with the customer towards a completed contract and implementing our full turn-key workforce accommodations solutions with our partners from Halfway River First Nation."

"Including Halfway River First Nation, Horizon North maintains 23 partnerships with Aboriginal communities across western and northern Canada and a dedication to employing members of those communities on our projects," adds Rod Graham. "The strength of our relationships is valued by our customers and recognized along with our high-quality full turn-key offering and our best in class safety record as reasons for doing business with Horizon North."

"This conditional award shows the significant benefits that our Halfway River Horizon North partnership can bring to our community," says Chief Darlene Hunter of the Halfway River First Nation. "From projects like these, we look forward to continuing to build financial prosperity, job opportunities and growth for our First Nation members."

About Horizon North

Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services division supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Construction division integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.

Corporate Information

Additional information related to Horizon North, including the Corporation's annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com

Forward-looking Statements

This press release contains "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of Horizon North. Forward-looking statements are statements that are not historical facts and in some cases, but not always, are identified by the words "will", "expect", "forward", "continue" and similar expressions. This press release contains forward-looking statements pertaining to, among other things, the following: contract revenue; facility usage; facility assets; capital expenditures; a final contract; and performance under the final contract.

Forward-looking statements are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Horizon North as of the date of such statements, are inherently subject to significant business, economic and competitive uncertainties and contingencies. The estimates and assumptions of Horizon North used for this press release may prove to be incorrect. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: general economic, market and business conditions; the conditions to approval of the conditional award; the contract and the project may not be completed in the timelines anticipated, in the manner anticipated or at all; the delivery of the project may not have the results currently anticipated by Horizon North; Horizon North may be unable to resolve mechanical or operational issues in the timelines anticipated, in the manner anticipated or at all; increased costs and expenses; and reliance on industry partners, including Halfway River Horizon North. Additional information on these and other risks, uncertainties and factors that could affect Horizon North's operations and financial results are included in Horizon North's annual information form and other documents which may be accessed through the SEDAR website at www.sedar.com.

Although Horizon North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. Horizon North's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and, except as required by applicable securities laws, Horizon North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

SOURCE Horizon North Logistics Inc.

For further information: please contact Rod Graham, President and Chief Executive Officer or Scott Matson, Senior Vice President Finance and Chief Financial Officer, 900, 240 - 4 Ave. S.W., Calgary, Alberta T2P 4H4; Telephone (403) 517 - 4654, Fax (403) 517 - 4678; website: www.horizonnorth.ca

Related Links

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