Jan. 30, 2009 - Fraser Papers Inc. late-yesterday agreed to sell approximately 10,500 tons of specialty printing, packaging and groundwood papers to Brookfield Paper LLC (BPLLC) for about $11.7 million.

Proceeds from the deal will be used to repay amounts outstanding under Fraser's working capital facility, the company said.

In addition, the Fraser has agreed to supply paper to BPLLC through July 31, 2009, at market prices.

The net proceeds to Fraser reflect a customary merchant's discount of 3.5% to end-user selling prices.

As part of the deal, Fraser will provide sales and administrative support to BPLLC.

BPLLC is a wholly-owned subsidiary of Brookfield Asset Management Inc., Fraser's majority shareholder.

Fraser Papers is an integrated specialty paper company that produces a broad range of specialty packaging and printing papers. The company has operations in New Brunswick, Maine, New Hampshire and Quebec.

SOURCE: Fraser Papers Inc.