Horizon North Logistics Inc. (“Horizon North” or the “Corporation”) (TSX: HNL.TO) provided an update today on the Corporation’s liquefied natural gas (“LNG”)-related activities, including new camp contracts to support the construction of the Coastal GasLink Pipeline project (the “Coastal GasLink Project”) and the expected opening of the Corporation’s Crossroads Lodge in Kitimat, British Columbia (the “Lodge”).
New Camp Contracts
Pursuant to a Teaming Agreement with Falcon Camp Services Inc. (“Falcon Camp Services”), Horizon North has entered into contracts (the “Camp Contracts”) to provide equipment, catering, hospitality and operations services for two camps supporting construction work on the Coastal GasLink Project in northern British Columbia.
The Parsnip and Lejac Camps (the “Camps”), located near MacKenzie, British Columbia and Fraser Lake, British Columbia respectively, will operate over an expected period of 30 months (the “Expected Service Period”) beginning in June 2019. The occupancy levels of the Camps will fluctuate over the Expected Service Period based on project needs and construction seasons varying in length from five to eleven months. The Camps will have approximately 350 beds combined at the beginning of the Expected Service Period, with an anticipated peak of approximately 1,900 beds in late 2020.
“These Camp Contracts provide an opportunity for Horizon North to gain valuable exposure to natural gas pipeline construction which will support LNG export facilities on the west coast, while continuing our dedication to strong relationships with Aboriginal communities and businesses,” says Rod Graham, President and Chief Executive Officer of Horizon North. “Horizon North has been working with Falcon Camp Services for some time to build a mutually beneficial agreement that will foster employment and investment in the local communities. Falcon Camp Services is a 100 per cent First Nations owned and operated company and we look forward to working with them to provide first-class services to guests at the Camps.”
Crossroads Lodge Opening
The first phase of Crossroads Lodge will be opening in mid-Q2 2019 on the Corporation’s 57-acre land parcel in Kitimat, British Columbia (the “Crossroads Property”). The Lodge will provide workforce accommodations to support development in the region, including the LNG Canada project, with the first phase including approximately 260 executive style beds. As industrial activity strengthens in the region, the Lodge will grow, with a permitted size of up to 1,000 beds.
“The opening of Crossroads Lodge will mark a significant next step in the development of our LNG strategy. It is the first of several phases of development on our Crossroads Property which will provide world-class services to residents and guests of Kitimat,” says Rod Graham, President and Chief Executive Officer of Horizon North. “In addition to the Lodge, the previously-announced 120-room modular Marriott Fairfield Inn & Suites is expected to open in late 2019 as part of 16 acres of commercial development, with the remaining lots being evaluated for office and retail developments. 27 acres of residential development at the Crossroads Property is slated for a full, mixed-use community serving Kitimat and the surrounding regions.”
About Horizon North
Horizon North is a publicly listed corporation (TSX: HNL.TO) providing a full range of industrial, commercial, and residential products and services. Our Industrial Services business supplies workforce accommodations, camp management services, access solutions, maintenance and utilities. Our Modular Solutions business integrates modern design concepts and technology with state of the art, off-site manufacturing processes; producing high quality building solutions for commercial and residential offerings including offices, hotels, and retail buildings, as well as distinctive single detached dwellings and multi-family residential structures. As a result of our diverse product and service offerings, Horizon North is uniquely positioned to meet the needs of our customers in numerous sectors, anywhere in Canada.
About Falcon Camp Services
Falcon Camp Services is a diverse company that specializes in remote workforce accommodations, catering and food services, and facility management. Serving the oil and gas, mining and forestry sectors in western and northern Canada, Falcon Camp Services has the capacity to work successfully with any project in the resource sector, with a commitment to providing comfortable accommodations, superb meals, and a full range of recreation and entertainment amenities to your remote workforce.
Additional information related to Horizon North, including the Corporation’s annual information form, press releases, financial statements and MD&A are available on SEDAR at www.sedar.com
For further information, please contact Rod Graham, President and Chief Executive Officer or Scott Matson, Senior Vice President Finance and Chief Financial Officer, 900, 240 – 4th Avenue S.W., Calgary, Alberta T2P 4H4; Telephone (403) 517 – 4654, Fax (403) 517 – 4678; website: www.horizonnorth.ca
This news release contains certain statements or disclosures relating to Horizon North that are based on the expectations of its management as well as assumptions made by and information currently available to Horizon North which may constitute forward-looking statements or information (“forward-looking statements”) under applicable securities laws. All such statements and disclosures, other than those of historical fact, which address activities, events, outcomes, results or developments that Horizon North anticipates or expects may, could or will occur in the future (in whole or in part) should be considered forward-looking statements. In some cases, forward-looking statements can be identified by the use of the words “anticipate”, “continue”, ”expect”, “forward”, “opportunity”, “will” and similar expressions. In particular, but without limiting the foregoing, this news release contains forward-looking statements pertaining to the following: the Lodge; the Camps; Horizon North’s exposure to natural gas pipeline construction; relationships with Aboriginal communities and businesses; Horizon North’s LNG strategy; the previously-announced Marriott Fairfield Inn & Suites; and development and benefits of the Crossroads Property.
The forward-looking statements contained in this news release reflect several material factors and expectations and assumptions of Horizon North including, without limitation: the ability of the Corporation to realize benefits from the Camp Contracts and the development of the Crossroads Property; that Horizon North will continue to conduct its operations in a manner consistent with past operations; the general continuance of current or, where applicable, assumed industry conditions; availability of debt and/or equity sources to fund Horizon North’s capital and operating requirements as needed; and certain cost assumptions in respect of Horizon North’s projects and business.
Horizon North believes the material factors, expectations and assumptions reflected in the forward-looking statements are reasonable at this time but no assurance can be given that these factors, expectations and assumptions will prove to be correct. The forward-looking statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements including, without limitation: general economic, market and business conditions; the Corporation’s future capital requirements; execution risk in connection with the Camp Contracts and development of the Crossroads Property; the Camps, the Lodge and other projects may not be completed in the timelines anticipated, in the manner anticipated or at all; the delivery of and demand for the Corporation’s products and services may not have the results currently anticipated by Horizon North; reliance on industry partners; unforeseen legal or regulatory developments; and certain other risks detailed from time to time in Horizon North’s public disclosure documents including, without limitation, those risks identified in this news release, and in Horizon North’s annual information form, copies of which are available on Horizon North’s SEDAR profile at www.sedar.com. Readers are cautioned that the foregoing list of factors is not exhaustive and are cautioned not to place undue reliance on these forward-looking statements.
The forward-looking statements contained in this news release are made as of the date hereof and the Corporation undertakes no obligations to update publicly or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.