The federal government said Friday that it can provide a $12-million loan to help keep a northern Ontario paper mill from closing.
Jobs Minister Patty Hajdu said in a letter to Kap Paper that the federal support would be an "exceptional" one-time measure to give the company time to develop a "pivot strategy" to stay competitive in the long run.
Kap Paper said late last month that it would have to idle operations at the struggling Kapuskasing mill after failing to secure immediate financial support from Ottawa. The mill directly employs about 420 people and supports 2,500 jobs in the region.