Western Forest Products Completes Sale of Ownership Interest in Newly Formed Mid-Island Partnership

VANCOUVER, British Columbia, March 28, 2024 (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”) announced today the completion of the previously announced agreement for the Nations to acquire a 34% interest from Western in a newly formed Limited Partnership (the “Partnership”) for $35.9 million (the “Transaction”). The parties also announced the new name for the Partnership, which will be known as La-kwa sa muqw Forestry (pronounced la-KWAH-sa-mook) going forward. The name means ‘the wood of four’ in the Kwak’wala language.

The Partnership consists of certain assets and liabilities of Western’s Mid Island Forest Operation, including the newly-established Tree Farm Licence 64, created through the subdivision of Block 2 from Tree Farm Licence 39. The operations of the new Partnership 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.

“Today we celebrate a significant and positive step toward the sustainable and effective management of our forests for the benefits of future generations,” said Dallas Smith, President of the Nanwakolas Council. “Congratulations to the Nations for their leadership in making this new business venture a reality and Western for their partnership.”

“The closing of the Transaction marks a key milestone in the journey towards a stronger, more inclusive forestry sector where everyone has the opportunity to benefit,” said Steven Hofer, Western’s President and CEO. “We’re looking forward to working with our partners to realize the benefits the Transaction holds for the partners, our workers and the communities where we operate.”

An event with the participating Nations, provincial and municipal government leaders, and Western representatives will be held in Campbell River on April 5 to celebrate this landmark transaction. Members of the media are asked to contact Western’s media relations to confirm their attendance and obtain event details.

About Nanwakolas Council
The Nanwakolas Council provides its member First Nations with advocacy and information services, technical support, coordination, and advice to assist them in their decision-making work. That work includes reviewing applications for provincial tenures and permits referred to the member First Nation for their decision and watching over Aweenak’ola through the Ha-ma-yas Stewardship Network. Through Nanwakolas Council, the member First Nations come together to make decisions on matters in which they share common interests. They unite to uphold their Aboriginal rights and title, using the powerful collective voice on the Nanwakolas Council. The Nanwakolas Council engages with governments, industry, and partners of the member First Nations to protect the rights of the First Nations, and to ensure they are honoured and respected. For more information – www.nanwakolas.com