The move came after the parties were unable to close the deal for a second time.
The $8.6-million sale of the industrial site in Campbell River was originally scheduled to close in early September, but the deadline was extended until Dec. 18.
The Elk Falls mill began operation in 1952, and at its peak, produced 784,000 tonnes of pulp, paper and kraft paper annually.
The site was permanently closed in 2010. Since then, equipment has been decommisioned and demolition has been completed.
When the sale was announced in August, Pacifica said the deal would create 400 new jobs in the region.