PORT ALBERNI, BC, May 3, 2021 /CNW/ - Huumiis Ventures
Limited Partnership ("Huumiis"), a limited partnership beneficially
owned by the Huu-ay-aht First Nations ("Huu-ay-aht"), and Western
Forest Products Inc. (TSX: WEF) ("Western") announced today the
completion of Huumiis' acquisition of an incremental 28 per cent
ownership interest in TFL 44 Limited Partnership ("TFL 44 LP") and
TFL 44 LP's general partner, TFL 44 General Partner Inc. ("TFL 44
GP") from Western, for $22.4 million.
With the completion of this transaction, Huumiis now owns a 35 per
cent ownership interest in TFL 44 LP and TFL 44 GP, with Western
owning the remaining respective 65 per cent.
"When we started down this road with Western a few years ago, we
did so with the words and guidance of our elders in mind," said
Tayii Ḥaw̓ił ƛiišin (Huu-ay-aht Hereditary Chief Derek Peters). "Our sacred principles of ʔiisaak
(utmost respect), ʔuuʔałuk (taking care of), and Hišuk ma c̕awak
(everything is one) continue to guide us as we focus on increasing
our jurisdiction over our hạhuułi (traditional territory) and
ensure the resources are managed sustainably to create wealth for
our Nation, while also protecting those same resources for future
generations. Working with Huu-ay-aht, Huumiis has presevered to
ensure our values and vision are carried forward in TFL 44 LP. We
are looking forward to Huumiis, as a wholly-owned Huu-ay-aht
business, continuing on this path with Western."
"The finalization of this next step in the transaction is a
historic milestone and positive step forward towards economic
reconciliation," said Huu-ay-aht Chief Councillor Robert J. Dennis
Sr. "We established Huumiis only a few years ago and now, as a
result of this transaction, we have a Huu-ay-aht business with a
significant ownership interest in the largest business that
operates in Huu-ay-aht territory. It's exciting for me as the
financial returns from this economic investment mean we can
continue to provide the current programs and services to our
people. And with that, I look forward to continuing our strong
relationship with Huumiis, Western, the USW, and building
relationships with other area First Nations."
"I'm thrilled to be celebrating the next phase of this very
successful partnership today," said Don
Demens, Western's President and CEO. "I'm excited because I
believe the partnership is going to create benefits for Huu-ay-aht
citizens and our employees, as well as the whole region, and I
believe this is an example of how business can participate in
reconciliation. Our relationship with Huu-ay-aht supports both our
interests, and that is the foundation of creating this long-lasting
partnership that will provide benefits for all of us well into the
future."
"I'm incredibly proud of what we've accomplished together," said
Shannon Janzen, Western's Vice
President, Partnerships & Sustainability and Chief Forester.
"I'm excited not only for Western and Huumiis, but also for our
workforce, the USW, local communities, governments and First
Nations as we celebrate another step towards a long-term vision for
reconciliation and revitalization of the forest sector in the
Alberni Valley."
"We are thrilled with the results of the hard work from all
involved in putting this deal together," said John Jack, a director of Huumiis' general
partner, Huumiis Ventures Corporation. "The mandate for Huumiis is
simple – to acquire interests in TFL 44 LP. As part of this
investment, we ensured that Huu-ay-aht's values and
vision are top of mind in the process. Through formation
of Huumiis and this successful acquisition, Huu-ay-aht's influence
is finally meaningfully realized in TFL 44 operations. We
took our deal to the Huu-ay-aht citizens, they voted yes.
This is a great day for Huu-ay-aht."
The shared vision of Huumiis, Huu-ay-aht and Western includes a
framework for opportunities for increased participation of area
First Nations through tenure ownership, training and employment and
business opportunities, sustained domestic manufacturing,
integrated resource management planning, effective marketing and
value-added product innovation, and participation of TFL 44 First
Nations on an advisory committee to the TFL 44 GP Board. A vision
for strong environmental stewardship is also shared, which will be
enhanced by the collective implementation of the Huu-ay-aht-led
Hišuk ma c̕awak Integrated Resource Management Plan
("IRMP").
"This combination of opportunities for participation of First
Nations in TFL 44 LP goes above and beyond that of virtually any
other forest company in BC. It also sets a standard for First
Nation engagement which is in keeping with the United Nations
Declaration on the Rights of Indigenous Peoples," said Chief
Councillor Robert J Dennis, Sr.
"Huumiis' increased ownership stake in TFL 44 LP is something
that our union fully supports as we believe it is in the best
interests of Huu-ay-aht citizens and our members," said
Brian Butler, President United
Steelworkers ("USW") Local 1-1937. "This transaction led to the
discussion and creation of the mutually beneficial agreement
between the USW and Huu-ay-aht that will ensure there are more good
paying jobs with benefits, pension and job security for all across
TFL 44. On behalf of all USW members working on TFL 44,
congratulations to Huumiis, Western and Huu-ay-aht for this
positive next step and we look forward to continuing to work
together."
The closing of this stage of the transaction paves the way for
the next stage – the acquisition of a further 16 per cent ownership
interest in TFL 44 LP and TFL 44 GP by Huumiis from Western, which
would bring Huumiis' ownership interest to 51 per cent in both.
This next stage is anticipated to close in the first quarter of
2023, subject to customary closing conditions, including approval
by the BC Provincial Government and a further vote by Huu-ay-aht
citizens at a People's Assembly.
In lieu of marking this historic closing in person due to
COVID-19 restrictions, Huumiis, Huu-ay-aht, Western, USW, other
area First Nations leaders and BC Provincial ministers are
celebrating virtually. See the remarks and greetings in this video:
https://youtu.be/XC_wUIvP07Y
About Huu-ay-aht First Nations and Huumiis Ventures Limited
Partnership
Huu-ay-aht First Nations is an indigenous community located on
the west coast of Vancouver Island in British Columbia. It is a part of the
Nuu-chah-nulth Nation, formerly called the Nootka. Huu-ay-aht is a
party to the Maa-nulth Final Agreement, a modern treaty that grants
its five member-nations constitutionally-protected self-government
as well as ownership, control and law-making authority over their
lands and resources. Huumiis Ventures Limited Partnership is a
limited partnership formed under the laws of British Columbia that is beneficially-owned by
the Huu-ay-aht First Nations. For more information, visit
huuayaht.org.
About Western Forest Products
Inc.
Western is an integrated forest products company building a
margin-focused log and lumber business to compete successfully in
global softwood markets. With operations and employees located
primarily on the coast of British
Columbia and Washington
State, Western is a premier supplier of high-value,
specialty forest products to worldwide markets. Western has a
lumber capacity in excess of 1.1 billion board feet from eight
sawmills and four remanufacturing facilities. The Company sources
timber from its private lands, long-term licenses, First Nations
arrangements, and market purchases. Western supplements its
production through a wholesale program providing customers with a
comprehensive range of specialty
products.
Forward-Looking Statements and
Information
This press release contains statements that may constitute
forward-looking statements under the applicable securities laws.
Readers are cautioned against placing undue reliance on
forward-looking statements. All statements herein, other than
statements of historical fact, may be forward-looking statements
and can be identified by the use of words such as "believe", "can",
"will", "anticipated" and similar references to future periods.
Forward-looking statements in this news release include, but are
not limited to, the potential benefits from the transaction,
statements relating to the framework for reconciliation and
revitalization in the Alberni Valley forest sector, the timing or
anticipate closing of the next stage of the transaction and the
selling of the additional incremental interest in TFL 44 LP in the
future. Although such statements reflect Western management's
current reasonable beliefs, expectations and assumptions as to,
amongst other things, the reconciliation and revitalization
framework, future supply and demand of forest products, global and
regional economic activity and the consistency of the regulatory
framework within which the Company currently operates, there can be
no assurance that forward-looking statements are accurate, and
actual outcomes, results and performance may materially vary. Many
factors could cause our actual results or performance to be
materially different including: general economic conditions;
relations with First Nations groups; changes in annual allowable
cut; changes in laws, regulations or public policy affecting the
forest industry; and other factors referenced under the "Risks and
Uncertainties" section of Western's Management's Discussion and
Analysis in Western's 2020 Annual Report dated February 18, 2021, which is available on
Western's website at www.westernforest.com. The foregoing list is
not exhaustive, as other factors could adversely affect Western's
actual results and performance. Forward-looking statements are
based only on information currently available to Western and refer
only as of the date hereof. Except as required by law, Western
undertakes no obligation to update forward-looking
statements.
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SOURCE Western Forest Products Inc.