Jemi Fibre Corp. Enters into Option Agreement on Private Timberlands

VANCOUVER, BC / ACCESSWIRE / October 1, 2015 / Jemi Fibre Corp. (TSXV: JFI) (“Jemi Fibre” or the “Company”) is pleased to announce it has entered into an agreement with CanAus Coal Limited (“CanAus”) pursuant to which CanAus has acquired an option (the “Option”) to acquire a portion of Jemi Fibre’s private timberlands in the Kootenay region of B.C. for $14 million, subject to Jemi Fibre retaining all timber rights on the optioned lands in perpetuity. The optioned lands consist of approximately 18,000 acres of the 136,000 acres of private timberland acquired by Jemi Fibre in 2014 for $37 million.

The term of the Option is for 5 years and provides payments to Jemi Fibre of up to $2.2 million as follows:

$300,000 upon the parties entering into the Option;
$400,000 on the first anniversary of the Option;
$500,000 on the second anniversary of the Option;
$500,000 on the third anniversary of the Option; and
$500,000 on the fourth anniversary of the Option.

In the year the Option is exercised, the annual option fee for that year will be deducted from the overall purchase price.

CanAus is the holder of the subsurface coal rights on the optioned lands and is currently working through feasibility stages of development. Over the past 3 years, CanAus has completed an extensive exploration program on the optioned lands under a land use agreement with Jemi Fibre and the prior owner. The Option provides for continuation of the land use agreement until the Option is exercised.

For further information, please contact:

Brent Lokash, President
Tel: 1-604-428-1075 ext: 200
Email: brent.lokash@jemifibre.com

About Jemi Fibre

Jemi Fibre is a Western Canadian based forest products company which trades on the TSX Venture Exchange under the symbol JFI. Jemi Fibre’s operations consist of timber ownership and management of private timberlands and Crown forest licenses, full service logging and trucking operations, post-peeling and wood treatment operations for the agricultural market and specialty lumber manufacturing. The Company’s head office and principal place of business is located at 1110-1111 West Georgia Street, Vancouver, British Columbia, Canada.

About CanAus Coal Limited

CanAus is a B.C. registered coal exploration and mining company. Based in Sparwood, B.C., CanAus holds the coal licenses to over 5,000ha of land within the Crowsnest coal field. CanAus is currently in the feasibility stages of development and looks to provide typical Elk Valley hard coking coal to global markets. CanAus is owned by its parent company CoalMont Pty Ltd, based in Brisbane Australia.

Forward Looking Statements

Certain statements included herein constitute forward-looking statements. The words “expect”, “intend”, “anticipate”, “propose” and “may” and similar expressions identify forward-looking statements. Forward-looking statements include, among other things, such risks, uncertainties and other factors set forth under “Risk Factors” in the Company’s current MD&A filed with the British Columbia Securities Commission. Forward-looking statements are necessarily based upon a number of estimates and assumptions. While such estimates and assumptions are considered reasonable by the management teams of Jemi, they are inherently subject to significant business, economic, competitive and regulatory uncertainties and risks and accordingly may not occur as described herein or at all. Investors are cautioned that forward-looking statements are not guarantees of future performance or events and, accordingly are cautioned not to put undue reliance on forward-looking statements due to the inherent uncertainty of such statements.

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this news release.

SOURCE: Jemi Fibre Corp. 

ReleaseID: 432373