Horizon North Logistics Inc. Announces New Contracts


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HNL.TO 6.82 -0.01


TSX Symbol: HNL

CALGARY, Dec. 4, 2012 /CNW/ - Horizon North Logistics Inc.  ("Horizon") announced today that it has entered into a three year contract for the provision of camp facilities to accommodate 368 people for the operator of a SAGD oil sands project near Fort McMurray, Alberta.  Horizon will provide the customer a full turnkey service in exchange for a fixed monthly rental rate for the camp equipment plus a daily charge for each occupied room.  The contract calls for a minimum daily charge for 230 occupied rooms.  The camp facilities are scheduled to be occupied in July 2013 and the expenditure required to build and install the assets will be incurred by Horizon beginning in early 2013.

In addition, Horizon announces that it has recently entered into a contract for the sale of a new 300 person camp including accommodation, office and recreation facilities to a mining operator in northwestern British Columbia.  Total value of the project, which includes design, manufacture, transportation and site installation, is approximately $10.5 million.  Horizon will begin manufacturing the 90 unit project in Q4 2012 with installation scheduled to be complete in mid 2013.