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New owner for Kenora sawmill

Vancouver financiers finalize $11.5-million deal to revive shuttered operation
Kenora Forest Products (File photo)

The former Kenora Forest Products sawmill has new ownership.

Vancouver's Itasca Capital has closed an $11.5-million deal to acquire the shuttered operation.

It's Manitoba-based parent company, Prendiville Industries, filed for bankruptcy, Dec. 5.

Acquired through one of Itasca's investee companies, 1347 Investors LLC, the operation will reopen under the banner of GreenFirst Forest Project.

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No date was included in the Oct. 6 news release on resuming production.

The sawmill sits on a 42-acre site with a production capacity of 200-million board feet annually of stud grade lumber products. The asset sale also includes 72 acres of premium waterfront land on Lake of the Woods.

The mill consumes up to 650,000 cubic metres of annual allowable harvest from Ontario Crown forests and is equipped to produce up to 150-million board feet per year on a two-shift basis.

"Our enthusiasm could not be higher about the advancement made by our principal investment at 1347 LLC," said Itasca CEO Larry Swets in a news release.

"Not only do we believe that 1347 LLC acquired the sawmill at a very attractive price, we are excited to see this asset grow as it is brought online."