NORTHWEST TERRITORIES
Lutsel K'e Dene economic arm Denesoline Corporation has acquired an interest in bulk commodities carrier Ventures West Transport LP.

Denesoline Corporation CEO Roy Shields (centre) signs an agreement to acquire an interest in bulk commodities carrier Ventures West Transport LP, which is majority owned by Tli Cho Logistics Inc. Pictures from left, Tlicho Investment Corp. chairperson Alex Nitsiza, Ventures West president Glenn Bauer, Shields, Tli Cho Logistics manager Dale Wheaton and Tlicho Investment president George Mackenzie on July 8. - Thandiwe Vela/NNSL photo

The corporation is investing $2.5 million for its share in the Fort Saskatchewan-based company, which is majority owned by Tli Cho Logistics Inc.

"This is a proud day for the Denesoline Corporation and the people of Lutsel K'e," Denesoline president Tom Lockhart said in a written statement.

"We have made a significant financial investment in a highly successful company that permits us to expand our business beyond the Northwest Territories and into jurisdictions such as Western Canada, the Yukon and Ontario."

Ventures West specializes in hauling bulk products including fuel and fertilizers, serving diamond mining companies in the Northwest Territories, the Yukon, northern Saskatchewan, Alberta, and British Columbia.

Tli Cho Logistics Inc. has held a 60 per cent interest in Ventures West since 2009.

"This is a great opportunity for two aboriginal groups to expand their business," Tlicho Investment Corp. president George Mackenzie said of Denesoline's investment in Ventures West.

"The aboriginals for thousands of years have utilized the lakes, rivers, and land in the North so it is rightfully so that two aboriginal neighbours form a partnership with a transport company."

This marks Denesoline's 18th joint venture, with strategic partnerships already in flight operations, reclamation, construction and other products and services. Denesoline is currently in year three of a five-year strategy, CEO Roy Shields said.

"Our focus is to maintain a higher level of presence in the marketplace with additional contracts," Shields said, adding the investment is expected to reap the corporation upwards of $600,000 per year. "This gives us another revenue stream that obviously goes into the corporation and ultimately funds the community."

Ventures West president Glenn Bauer said the company has gross revenues of $50 million per year and is continuing to expand in the North and south. Bauer, who incorporated the company in 1989, says he intends to have Ventures West wholly aboriginal-owned within the next three years, as part of his exit strategy.

"I will retire eventually and this is a good way to have a succession plan for my business," Bauer said.

Both Denesoline and Tlicho Investment intend to acquire more interest in the company in the next two to three years, Shields and Mackenzie said.

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