A lot of activity has been taking place over the past several months reestablishing the Multiply Flooring Products Mill in Red Rock (Multiply®).  I would like to share the milestones achieved and then discuss the steps to follow in order to successfully rebuild this business.
     
Multiply® has asked the Ministry of Natural Resources to work with them to investigate fibre supply opportunities for both the new Multiply® Mill and the 45 megawatt cogeneration plant.  Discussions with existing license holders in nearby forests are being initiated to explore business arrangements and determine if an economical and sustainable wood supply is available.
 
An application for the biomass cogen plant was filed under the Ontario CHPIII program on July 24, 2008, the deadline for the filing.  The application was completed with the assistance of EKT-90, a Thunder Bay project management and industrial contractor company and Thornrich Developments, a Toronto based energy development company who has been successful in making inroads in industrial and municipal waste to energy projects in Ontario and internationally. With a successful application, the filing for a 20 year Power Purchase Agreement will commence.
     
In addition to assisting with the CHPIII filing, Thornrich will have the option to provide construction financing and assist in securing private debt and equity financing in conjunction with Dan Sinclair of Flexis Financial located in Ft. Myers, Florida.
     
Cathcart & Associates are continuing their efforts in completing application and providing necessary data for the various Heritage Fund and Prosperity Fund programs.

A meeting was held on August 5, 2008 in Red Rock with Michael Gravelle, Minister of Northern Development and Mines, to review the progress of the Projects, see first hand the removal of the idled paper machine equipment and the preparation underway to facilitate the new Multiply® equipment and the biomass cogen plant.

Once notification is received that Red Rock Mill, Inc. is awarded a Power Purchase Agreement, private funding will be secured and orders will be placed for the new Multiply® equipment and the biomass cogen plant.

The target date for Multiply® is now June 2009 with the biomass cogen plant October 2009.

Discussions with the labour unions will begin once the Power Purchase Agreement has been acknowledged.

For further information, you may contact Robert Van Patten, President of Red Rock Mill, Inc. and Multiply Flooring Products, Inc. at 618-655-1201.

Released:  August 21, 2008