Civeo Divests McClelland Lake Lodge Assets For $36M

Civeo Corp CVEO has entered into a definitive agreement to sell its McClelland Lake Lodge assets to a U.S.-based mining project for approximately C$49 million ($36 million).

The company expects to recognize anticipated gains from the McClelland Lake Lodge assets of approximately $35 million throughout the second half of 2023 and first quarter of 2024.

The company expects to close the transaction before January 31, 2024, subject to the satisfaction of customary closing conditions. 

The company expects an increase in its 2023 cash flow of approximately $20 million, with the remaining net proceeds to be received in 2024.

"After years of solid returns from this asset, we are pleased that, subject to the satisfaction of customary closing conditions, we will have additional financial flexibility to fund growth opportunities and return capital to shareholders while maintaining our strong balance sheet," said Bradley Dodson, Civeo's President & Chief Executive Officer.

Price Action: CVEO shares are trading higher by 4.04% at $20.49 on the last check Tuesday.