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Date of sale pushed back again for the Gorham Mill

December 15, 2010
GORHAM — After months of back and forth with the potential sale of the Fraser Mill in Gorham, it looks as though the property may have a new owner in the very near future. However, due to the paperwork not being completed in time, the date of sale for the mill to Counsel RB Capital has been pushed back from Dec.8 to Dec.16.

Gregory Schain, a vice president of Counsel RB said that the company still plans on going through with the proposed acquisition and that they are still looking for a potential operating partner. Mr. Schain says that the company does plan to acquire the mill on Dec.16.

The company has spoken with Merchant Banc, the first company to propose purchasing the mill in order to run the facility, and they will speak again after the closing.

Counsel RB has also said that they hope to find an operating partner who can bring additional capital to the table, while also understanding how to operate a paper mill on a daily basis. According to Schain the company has spoken with potential operators, however, "most of our time has been spent getting the transaction complete, but we hope to tour various groups through the plant shortly after closing."

The company is also working on completing a Phase 1 environmental report. At this point in time, the company has also spoken with AVRRDD about the proposed pipeline to the mill.

"It is a great project that will make any future operations at the mill much more economically viable," Mr. Schain said about the pipeline. "Sharon Gauthier and her team did an amazing job putting this project together. It was likely very difficult to gather funds from so many various sources. The project will proceed once we get the other pieces of restarting in place."

When asked about the potential for the Laidlaw biomass plant to provide excess hot water to the mill, Mr. Schain said, "we have not spoken with Laidlaw yet but are aware of their proposals and involvement in the mill in the past and will hopefully find ways to work together going forward."

Martin Lord Osman
Varney Smith
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