WINNIPEG, Manitoba—OmniTRAX Canada has accepted a letter of intent from a group of Northern Manitoba First Nations for the purchase of its Manitoba assets. This triggers a 45-day due diligence period in which both parties will work together to ensure that a purchase becomes a reality.
With the line now in a stable position, OmniTRAX has the confidence to work with regional First Nations to change ownership in a way that will not only enhance self-reliance but also ensure the growth needed for the assets to be a success well into the future.
“Having visited many communities along the rail line, it became clear to me that the rail line served as a utility for these remote communities and that for the line and the assets to truly succeed, First Nation participation in ownership and management was essential,” said Merv Tweed, president OmniTRAX Canada.
This transaction will add to the already substantial economic development of the participating Northern Manitoban First Nations as well as maintain vital interconnectivity for all of the communities currently being serviced along the line. It adds a further boost to the enhancement of the railway and port as a major transportation infrastructure for the Northern region of Canada, enabling increased regional, continental and global trade opportunities.
OmniTRAX Canada has agreed to work with the Northern Manitoba First Nations for a number of years ensuring a smooth transition and detailed knowledge transfer.
The Federal and Provincial Government will be approached to participate in the process to support the purchaser and ensure the success of this historic transaction.
Further specifics of the group and the transaction will follow in the New Year.
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