05/24/2013 06:59 EDT | Updated 07/24/2013 05:12 EDT

Catalyst paper sells Elk Falls site to Calgary-based concern for $8.6M

VANCOUVER - Catalyst Paper (TSX:CYT) says it has sold its Elk Falls industrial site and related assets to Calgary-based Quicksilver Resources Canada Inc. for $8.6 million.

Sale of the approximate 1,200-acre parcel includes a fully serviced, 400-acre industrial site and adjacent property near Campbell River, B.C.

The site formerly housed a paper and pulp mill which began operation in 1952, was indefinitely curtailed in 2009 and closed permanently in 2010.

Work has been underway since then to prepare the site for sale and redevelopment for other industrial uses.

Quicksilver has extensive natural gas holds, Catalyst said in announcing completion of the deal Friday.

Previously, Catalyst had planned to sell the site for the same amount to Pacifica Deep Sea Terminals, but terminated the deal in December after the two sites were unable to reach a final agreement after months of negotiations.

Catalyst Paper manufactures diverse specialty mechanical printing papers, newsprint and pulp. Its customers include retailers, publishers and commercial printers in North America, Latin America, the Pacific Rim and Europe.