Civeo to sell its McClelland Lake Lodge assets for C$49M

Civeo has entered into a definitive agreement to sell its McClelland Lake Lodge assets to a US-based mining project for approximately C$49M, or $36M. The company expects to close the transaction before January 31, 2024, subject to the satisfaction of customary closing conditions. Highlights of the transaction include: purchase price of approximately $36M with anticipated net proceeds of $30M after net demobilization costs; anticipated gains from the McClelland Lake Lodge assets of approximately $35M to be recognized throughout the second half of 2023 and 1Q24; possible future opportunities to provide ancillary services to the buyer; and an expected increase in the company’s 2023 cash flow of approximately $20M, with the remaining net proceeds to be received in 2024.