MONTREAL, QUE - Tembec will sell approximately 49,500 hectares of land in British Columbia to  Jemi Fibre Corp. for $35 million. The transaction will take place in two phases, with completion scheduled for September.

The forest products manufacturer said the transaction of land includes a seven year earn-out provision for Tembec would be entitled to additional payments of at least $2.1 million. The first phase of closing is scheduled for June and involves the sale of approximately 17,700 hectares for $15 million. The second phase, scheduled for completion in September, involves the sale of the remaining 31,800 hectares for $20 million. The land is located in in the Regional District of East Kootenay, BC.

Tembec (TSX: TMB) said the transaction is part of its previously announced BC Land Sale Initiative, which had a goal of up to $75 million  in land sales by December 2014. The company has realized $23.2 million to date, and will near $60 million following the timber sale to Jemi.

Buyers are still being solicited for the remaining 7,433 hectares owned in British Columbia, Tembec said. With principal operations based in Canada and France, Tembec has annual sales of approximately $1.6 billion. Products produced include lumber, pulp, paper and specialty cellulose.