VANCOUVER, BC - Conifex Timber Inc. (TSX VENTURE:CFF) said it is suspending work on its biofuel power plant while it seeks funding, even as a turbine generator arrived at its biofuled power facility under construction in Mackenzie, BC.
Conifex says is continuing with essential engineering and equipment procurement activities but will temporarily suspend installation and construction activities as it secures long-term financing. The bioenergy project is about 30% complete and both on budget and on schedule, Confiex reports.
Negotiations with one potential lender seeking an equity interest were terminated, Confiex says, and financing could jeopardize the commercial operation date. It was to begin operation in the third quarter of 2013.
"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," said Ken Shields, CEO. In October, Conifex reported a net loss of C$3.7 million for the third quarter of 2012 compared to a net loss of $2.4 million for the second quarter of 2012.
Conifex operates a two-mill sawmill complex in Mackenzie, as well as one in Fort St. James, BC. Now operating at 65% of capacity, Conifex sawmills have an annual lumber production capacity of 745 million board feet.
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