Premier Darrell Dexter is outlining the many layers of a multi-million-dollar deal to purchase the assets of the former Bowater-Mersey paper mill.

The province is purchasing $150.4 million in assets including the 550-thousand acres of land, the Brooklyn Power Plant and the former paper mill site and its wharf.

“After months of tough negotiations, the province finalized a deal with resolute Forest Products and the Washington Post to acquire the Bowater-Mersey Paper Company Ltd. shares for $1,” Premier Dexter told a crowded room at the Westin Hotel.

While the announcement was made late Monday night, details were unveiled at the Forestry of the Future forum at the Westin Hotel Tuesday morning.

Resolute closed the former Bowater mill in June throwing 320 people out of work.

The government will also assume $136.4 million in liabilities including the pension plan for former mill workers.

Government officials say the assets will be used to fully fund the pension plan, which has a liability of $100 million.

“Nova Scotians can take comfort in knowing that the liabilities are covered off by the value of the assets,” said Dexter.

The deal is adding almost $117.7 million in debt to the province’s books, which is currently sitting at the province’s debt of $13.3 billion.

The province expects harvest licenses and stumpage fees from cutting the land will cover debt servicing costs. Stumpage fees are estimated at $4 million per year based on harvesting 70 per cent of the land.

As part of the deal, the province will turn around and sell the 30-megawatt biomass generating plant to Nova Scotia Power’s parent company.

“Emera will buy Brooklyn Power from the province for $25-million, protecting ratepayers, jobs and a clean energy source,” said Dexter.

Meanwhile the former mill site will be transformed into a centre for cleaner energy, bioenergy and forestry innovation. The centre is expected to attract private investment and drive innovation in the forestry industry. This was a key recommendation put forward by the Lunenburg Queens transition team to spur economic development.