PRINCE RUPERT, BRITISH COLUMBIA -- (Marketwire) -- 08/01/12 -- Colonial Coal International Corp. (TSX VENTURE: CAD) -
Watson Island Development Corporation (WatCo) confirmed today that it has presented an offer to purchase the former Skeena Cellulose pulp mill properties in Prince Rupert and Port Edward. The offer is subject to a number of conditions.
"We are offering $5 million to Prince Rupert and $500,000 to Port Edward for land and assets in those communities," says Perry Braun, CEO and President of WatCo. "Our plans are to develop a seaport terminal and industrial park on Watson Island near Prince Rupert."
Once operational, the new terminal will enhance Pacific Gateway trade activities in Prince Rupert.
"A new shipping terminal will contribute to Prince Rupert's reputation as a trade gateway to Asia," says Mayor Jack Mussallem. "It will create permanent direct and indirect jobs and significantly expand the city's industrial tax base."
Sale conditions include the development, approval and funding of a remediation plan for the land, which is contaminated as a result of decades of pulp mill operation. WatCo has offered to fund the planning process and make a significant contribution to the cleanup, pending provincial government approval.
Other conditions include the notice requirements of the local governments, resolution of current court actions against the local governments by the former owner, and historic licensing and regulatory issues.
Watson Island Development Corporation is a limited company incorporated in British Columbia in 2012 for the purposes of this project. It represents a unique collaboration of First Nations, Lax Kw'alaams and Metlakatla, with Colonial Coal International and Hillsborough Resources.
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