Landmark Forestry Agreement will Support Increased First Nations Participation in a Stronger Vancouver Island Economy and Vision For the Future

VICTORIA, British Columbia, Oct. 23, 2023 (GLOBE NEWSWIRE) -- The Tlowitsis, We Wai Kai, Wei Wai Kum and K’ómoks First Nations (the “Nations,” all member First Nations of the Nanwakolas Council), and Western Forest Products Inc. (TSX: WEF) (“Western”) have reached an agreement for the Nations to acquire a 34% interest from Western in a newly formed Limited Partnership (the “Partnership”) for $35.9 million (the “Agreement”). The Province of British Columbia helped to facilitate the Partnership through Incremental Treaty Agreements with the Nations, all of whom are in Stage 5 of the British Columbia Treaty Process.

The formation of the Partnership and acquisition by the Nations is subject to various closing conditions, including subdivision and tenure transfer approvals from the British Columbia Ministry of Forests. Western and the Nations are working towards closing the acquisition in the first quarter of 2024.

The Partnership will consist of certain assets and liabilities of Western’s Mid Island Forest Operation, including Block 2 of Tree Farm Licence 39. The operations of the new Partnership will cover approximately 157,000 hectares of forest land in the traditional territories of the Nations near the communities of Campbell River and Sayward on eastern Vancouver Island. The Partnership will manage an allowable annual cut of 904,540 cubic metres of timber and includes a long-term fibre agreement to support Western’s British Columbia coastal manufacturing operations.

Tlowitsis, We Wai Kai, Wei Wai Kum, and K’ómoks, who share significant areas of their respective territories, have been stewards of their forests for millennia. Nanwakolas Council assisted the four Nations in concluding the Agreement. “This is a good day for everyone on Vancouver Island and the central coast,” says Nanwakolas Council President Dallas Smith. “For far too long, the very people who are the reason there were healthy, abundant forests here prior to colonization were excluded from participation in their continued sustainable management and any ability to benefit from them. Today we celebrate a significant step forward on the pathway to sustainable, effective resource management of our forests for the benefit of future generations. I applaud the Nations for taking this step. I acknowledge Western for stepping up into the Partnership and thank BC for helping make this happen.”