VANCOUVER, BC -- Conifex Timber Inc. has entered into a non-binding letter of intent to acquire the commodity lumber distribution business owned and operated by Welco Lumber Corp. and the transportation and logistics business owned and operated by Navcor Transportation Services Inc.

Welco and Navcor are both private companies based in British Columbia that have provided lumber marketing and logistics services to Conifex on a contract basis since Conifex commenced production at its Fort St. James sawmill complex in March of 2009.

Conifex intends to operate its lumber distribution business under a newly formed company and maintain trading relationships previously established by its commodity lumber sales group.

Under the terms of the proposed Transaction, Conifex shall pay an aggregate of $1.525 million to Welco, as well as payment of certain commissions to Welco for a three-year period following closing.

Conifex CEO Ken Shieldssaid, "The team proposed to come over to Conifex has done a superb job arranging products sales and deliveries to the three largest softwood lumber import markets in the world -- the US, China, and Japan"