Vancouver-based Interfor Corp. has announced the sale of its sawmill in the town of Gilchrist to Neiman Enterprises Inc. The deal breathes life into the idle mill, which was closed in June due to COVID-19 related economic impacts.

Completion of the transaction is expected to occur in the fourth quarter of this year, according to a release issued by Neiman, a Wyoming-based company.

“We anticipate restarting the mill in short order,” said Jim Neiman, president and chief executive of Neiman. “We look forward to partnering with the employees and community to ensure the long-term success of this historic operation.”

Neiman is a privately-held business with pine board sawmill operations in Wyoming and South Dakota. It also has a stud mill in Colorado. The Gilchrist mill specializes in ponderosa and lodgepole pine boards.

Toronto-listed Interfor announced in May it was mothballing the mill due to challenging economic circumstances resulting from COVID-19, which sent global markets into a tailspin earlier this year. Prior to curtailment, the mill produced approximately 80 million board feet of lumber per year and employed 150 workers.

“After careful review of the potential future options for the mill, we believe the sale to Neiman offers the best long-term outcome for our employees and the surrounding communities,” said Andrew Horahan, vice president of western operations for Interfor.

Mike Mackay, vice president of corporate development & strategy for Interfor, said the terms of the deal are not being disclosed.

The sale of the Gilchrist mill comes as lumber prices are skyrocketing, due to the closure of mills around the country earlier this year and a lack of lumber available for sale. The price for a thousand board feet of lumber has soared to more than $900, compared to less than $400 back in May.

Interfor still maintains a presence in the Pacific Northwest, with one stud mill in

Oregon and two in Washington.