Resolute rejects Repap’s bid for Fort Frances pulp mill
March 22, 2019 By P&PC Staff
Resolute has rejected the offer by Repap Resources Group (under the name Rainy River Packaging) to purchase an idled pulp mill in Fort Frances, Ontario.
According to CBC News, the company informed Fort Frances mayor June Caul via letter on Monday.
Last Friday, Repap said it had submitted a “multi-million-dollar” bid to buy the property and reopen the mill, which closed in 2014.
In Resolute’s letter, the company said Repap’s offer “fell short on multiple levels.”
Resolute had already signed an agreement with a redevelopment company in January, but had until March 15 to review other bids.
The developer will likely demolish the mill to create a community space, and Resolute would retain its access to the Crossroute Forest, the main source of fibre supply for the area, until at least 2022 when its license expires.
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