Skookum Asphalt has signed a letter of intent to purchase the paving arm of Castle Rock Enterprises, Castle Rock’s CEO confirmed this morning.

Paul Gruner told the Star this morning the company’s board of directors has approved the sale, though no closing date for the agreement has been established.

Castle Rock will complete all the paving work it has lined up for the season, he said.

Given that company employees are cross-trained in paving and civil construction like water and sewer utility work, Gruner said, he expects a minimal impact on employees next season. There are approximately 75 workers now, the bulk of whom are seasonal, he explained.

Gruner also serves as the general manager for Dakwakada Capital Investments, the arm’s-length development corporation of the Champagne and Aishihik First Nations and Castle Rock’s parent company.

Castle Rock’s board felt the sale would provide the best value for the company’s shareholders, he said.

“It’s an opportunity for us to focus on a core business, which is underground utilities,” Gruner said. “We are well-positioned for that.”

The CEO said the company is also looking to expand its work on reclamation of soil contaminated by hydrocarbons, as it already has a treatment area in Castle Rock’s site off the Alaska Highway below Haeckel Hill.

The sale amount is not being disclosed.

“Certainly, Castle Rock is in strong financial shape,” Gruner said.

“We are certainly not in a situation of financial stress. This is an opportunity to add more value for our shareholders.”

The company has done well developing its paving business over the last six years, he said, and would like to thank all those who supported the business.

Chris Simons, division manager with Skookum Asphalt, said this morning he will not discuss Skookum’s decision to buy Castle Rock’s paving arm.

“It came down to a business decision by two companies,” Simons said.