Conifex bioenergy project delayed
November 20, 2012, Vancouver, BC - Conifex Timber Inc. announced that its bioenergy project in Mackenzie, B.C. has been temporarily delayed while the company secures long-term financing.
According to Conifex, the project is approximately 30 percent complete, including delivery of the turbine generator and is currently on budget and on time. In order to further the continued development of the project and secure satisfactory long-term financing, Conifex is continuing with essential engineering and equipment procurement activities but will temporarily suspend installation and construction activities.
"While it is disappointing to have to reduce expenditures on the project over the next few months, we concluded that it was more important for us to have the best possible financing in place to ensure that an optimal value is realized for Conifex and its shareholders over the 20-year term of our energy purchase agreement with B.C. Hydro," said Ken Shields, Chief Executive Officer of Conifex. "We remain optimistic that we will identify appropriate financing for the Bioenergy Project that makes sense for Conifex."
Conifex said it is continuing discussions with several lenders with respect to long-term financing for the project. Negotiations with a potential lender that was seeking an equity interest in the project have been terminated. A material delay in securing long-term financing could delay the overall development of the project, said Conifex, including the commercial operation date, which is currently scheduled for the third quarter of 2013.