KEVIN ROLLASON
Winnipeg Free Press
It’s nowhere near a done deal, but at least The Pas, Man. has a ray of hope that its pulp and paper mill won’t close.
Vernon-based Tolko Industries confirmed Monday night that it has received a signed letter of intent from a potential buyer for its pulp and paper mill that it announced last month it was closing on Dec. 2.
Jim Baskerville, Tolko’s vice-president, emphasized that the letter of intent is not a guarantee of a sale, but “it’s an important first step.”
“These letters are non-binding, but they lay out the framework for a deal. They come with clearly spelled out conditions. We know what the conditions are and we will work with government, the provincial and municipal, and the union.”
Baskerville would not divulge the possible purchasing company’s name, but he added it wasn’t alone.
“There are several parties actively in the mix, but this one is the most advanced in the offer,” he said.
Last month, Tolko stunned the town of 5,500 when it announced it would close the mill Dec. 2, throwing more than 300 people out of work.
Earlier this month, Tolko rejected a three-year municipal and education tax break offered by the mayor of The Pas to stop the closure.
The Pas Mayor Jim Scott said he was “cautiously optimistic” about a possible deal in the works to sell the mill.
“If they can cross their T’s and dot their I’s and get people on this I’m sure we’ll have the mill continue to operate.”