VANCOUVER, BC, Oct. 6, 2020 /CNW/ - Itasca Capital Ltd.
(TSXV: ICL) ("Itasca" or
"Company") is pleased to announce that, further to its press
release of September 17, 2020, one of
its investee companies, 1347 Investors LLC ("1347 LLC"),
today completed its investment in a sawmill and related assets
located in Kenora, Ontario
The purchased assets are comprised of a sawmill and related
equipment and lands of approximately 114 acres. The sawmill,
sitting on a 42 acre site, is expected to consume up to 650,000
cubic meters of annual allowable harvest from Ontario forests and is equipped to produce up
to 150 million board feet (MMBF) per year on 2 shifts of quality
SPF (Premium, #1&2, stud grade and MSR grades focused on PET
8-9' lumber products). The sawmill is located near major
transportation routes, including the Trans-Canada Highway and the
main Canadian Pacific rail line, providing easy access to the
nearby Canadian-United States border and several key mid-west U.S.
markets, including Minneapolis,
Chicago, St. Louis and Dallas. It is expected that the Kenora sawmill can be optimized to achieve
production capacity of 200 million board feet annually.
Larry Swets, Director and Chief
Executive Officer of Itasca
stated, "Our enthusiasm could not be higher about the advancement
made by our principal investment at 1347 LLC. 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."
Kyle Cerminara, Chairman of the
Board of Directors of Itasca
added, "We are pleased to have 1347 LLC close its investment in the
Kenora Sawmill and look forward to executing on Itasca's recently announced developments,
including the addition of Paul
Rivett and Rick Doman to the
Board of Itasca."
Forward Looking Information
Certain information in this news release constitutes
forward-looking statements under applicable securities laws. Any
statements that are contained in this news release that are not
statements of historical fact are forward-looking statements.
Forward looking statements are often identified by terms such as
"may", "should", "anticipate", "expect", "potential", "believe",
"intend", "estimate" or the negative of these terms and similar
expressions. Forward-looking statements in this news release
include, but are not limited to statements with respect to the
timing to bring the Kenora sawmill
online, the anticipated benefits of the acquisition to 1347 LLC,
the ability to grow the Kenora
sawmill, the anticipated consumption and production capacity at the
sawmill and the future developments of Itasca including board appointments.
Forward-looking statements are based on assumptions, including
expectations and assumptions concerning: interest and foreign
exchange rates; capital efficiencies, the lumber industry (and its
growth and growth rates) in North
America, the anticipated benefits of the acquisition and the
Company's future plans and ability to complete future investments.
While the Company considers these assumptions to be reasonable,
based on information currently available, they may prove to be
incorrect. Readers are cautioned not to place undue reliance on
forward-looking statements. In addition, forward-looking statements
necessarily involve known and unknown risks, including, without
limitation, risks associated with general economic conditions;
adverse industry events; future legislative, tax and regulatory
developments. Readers are cautioned that the foregoing list is not
exhaustive and other risks are set out in the Company's public
disclosure record filed under the Company's profile on
www.sedar.com. Readers are further cautioned not to place undue
reliance on forward-looking statements as there can be no assurance
that the plans, intentions or expectations upon which they are
placed will occur. Such information, although considered reasonable
by management at the time of preparation, may prove to be incorrect
and actual results may differ materially from those anticipated.
Forward-looking statements contained in this news release are
expressly qualified by this cautionary statement and reflect our
expectations as of the date hereof, and thus are subject to change
thereafter. The Company disclaims any intention or obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by law.
Neither TSXV nor its Regulation Services Provider (as that term
is defined in policies of the TSXV) accepts responsibility for the
adequacy or accuracy of this news release.
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SOURCE Itasca Capital Ltd.
