08:33 AM EDT, 06/19/2024 (MT Newswires) -- GreenFirst Forest Products ( ICLTF ) said Wednesday that its subsidiary Kap Paper secured a non-revolving term loan facility of up to $24 million to support its paper mill operations in the town of Kapuskasing, Ontario.

The loan will be used for general working capital purposes and to ensure Kap Paper's competitiveness, GreenFirst said.

According to GreenFirst, Kap Paper has made operational improvements amid challenges related to diminishing chip consumption.

"The company's sawmills in Kapuskasing, Hearst and Cochrane utilize Kap Paper's operations as an outlet for their chips," said Joel Fournier, GreenFirst's CEO. "The financial support is integral to the company's long-term strategy."

GreenFirst's share price jumped 13% yesterday to $0.385.