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Canfor Corporation (TSX:CFP) has successfully completed the subdivision and sale of its Forest License in the Mackenzie Timber Supply Area (TSA) to the McLeod Lake Indian Band and the Tsay Keh Dene Nation. This transaction marks a significant step in Canfor's commitment to fostering Indigenous participation in the forest industry and enhancing local economic development.
The deal, announced today, divides the Forest License equally between the two Indigenous groups. Stephen Mackie, Executive Vice President of North American Operations at Canfor, emphasized the importance of this agreement: "Building on our long-standing relationships, Canfor is pleased to have reached this arrangement that will expand the Nations' participation in the forest economy and stewardship of forest resources in the region."
The agreement is expected to bring substantial benefits to both Indigenous communities and the broader region. By enhancing fiber access within the TSA, Canfor anticipates that the sale will not only bolster the local economy but also improve forest management practices. The transaction aligns with Canfor’s strategy to support sustainable forest stewardship and community development.
The total proceeds from this tenure sale, coupled with the previously announced disposition of associated Mackenzie sawmill assets, amount to $69 million. This financial outcome underscores the value of the assets and reflects Canfor’s strategic focus on optimizing its operations while fostering positive relationships with Indigenous communities.
The sale represents a meaningful step forward in Canfor's efforts to integrate Indigenous interests into its operational framework and contribute to the long-term sustainability of the forest industry in the region.
