MGX Minerals agrees to buy former Cranbrook Tembec mill site for $3.7M

MGX Minerals is pleased to announce it has entered into negotiations to buy the now-defunct Tembec mill site in Cranbrook.

by
Picture of the old Tembec mill site in Cranbrook's industrial park.

MGX Minerals is in negotiations with Tembec to purchase the now-defunct mill site in Cranbrook's industrial park for $3.7 million. — Photo courtesy Kootenay Business

MGX Minerals Inc. is pleased to announce the Company has entered into Definitive Agreement (the “Agreement”) with Tembec (“Tembec”) (TSX: TMB) to acquire the Cranbrook mill site in Cranbrook, British Columbia for $3.7 million. The Cranbrook mill complex spans 38-hectares (98 acres) located within the Cranbrook industrial park. Major infrastructure including buildings and a wood processing plant remain on site. The site is a large fully serviced industrial location with natural gas, water, power and rail access. The Company plans to use the location for the processing of industrial minerals including ore from the Company’s Driftwood Creek magnesium deposit.

"This is exciting news for the city and surrounding region," commented Cranbrook Mayor Lee Pratt. "MGX Minerals will be a great fit in Cranbrook helping diversify our industrial sector, one of our key economic priorities, and creating new employment opportunities. There are strong synergies between MGX and the community, and I look forward to working with MGX as they advance their development."

The Company is in discussions regarding mortgage and equity financing of the land purchase as well as leasing of unused portions of land and sale of unused equipment. MGX anticipates closing of the transaction will occur on or before December 15, 2015. Closing of the transaction is subject to obtaining adequate financing, satisfactory completion of environmental review and other customary conditions. There can be no assurance that the transaction will be consummated in whole or in part.

About MGX Minerals

MGX Minerals (CSE: XMG) is a diversified Canadian mining company listed on the Canadian Securities Exchange. MGX is engaged in the acquisition and development of industrial mineral deposits in western Canada that offer near-term production potential, minimal barriers to entry and low initial capital expenditures.

The Company’s flagship project is the Driftwood Creek magnesium project in the East Kootenay region of British Columbia. The long-term strategic business objectives of the Company include constructing a quarry mine and processing plant to produce magnesium oxide at Driftwood Creek. The Driftwood Creek project is currently under permitting review for granting of a mining lease and applications for associated operating permits are in various stages of preparation. MGX owns the majority of significant magnesite properties in the Province of British Columbia as reported by the British Columbia Geological Service.

Related articles

Kootenay BizBlog, East Kootenay, West Kootenay Publisher Keith Powell steps into retirement

After 42 years of involvement in the local publishing scene, Kootenay Business publisher Keith Powell is retiring

Kootenay BizBlog, East Kootenay, West Kootenay, Developments, Financial Outdoor gathering spaces enhanced

Trust provides over $1.9 million for 12 community projects

Kootenay BizBlog, East Kootenay, Technology Online Portal Seeks to Test Internet Connectivity Performance Across the Basin and Boundary

The online testing portal is designed to measure internet connections speeds and get a better understanding of current broadband services

View all articles

Comments