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Revamped deal for shuttered Cape Breton paper mill not in danger, says minister

Published on September 20, 2012
Published on September 20, 2012
Topics :
Pacific West Commercial , Canada Revenue Agency , Cape Breton , Nova Scotia

HALIFAX - Nova Scotia's natural resources minister says a delay in releasing details of a revamped funding package for the NewPage Port Hawkesbury paper mill doesn't mean the deal is unravelling.

Charlie Parker had initially said a technical briefing would be held earlier this week.

However, Parker says negotiations are ongoing with the shuttered mill's prospective buyer, Pacific West Commercial Corp., and government lawyers are in the "final stages" of looking at the fine details of the deal.

The government announced it would revise the funding package for the mill after the Canada Revenue Agency rejected a power rate arrangement for the operation.

Parker says it's unclear when an agreement will be reached, but adds the goal is to get the mill back in operation as soon as possible.

He says the new agreement will not include more than the $124.5-million in funding for the mill announced last month.

He says a recent court ruling that rejected the company's bid to cancel a municipal tax deal is a separate issue that isn't affecting the current negotiation.

© Canadian Press

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