DIAND Minister Robert Nault announced the funding to help the band acquire the egg producing operation, located in Hay River's industrial area. The money comes from the department's Economic Development Opportunity Fund.
"The Canadian Egg Marketing Agency will purchase and market all of the eggs produced by Denendeh Eggs," said Nault during a visit to Yellowknife, Aug. 20. "Profits from the operation will create wealth for the community both today and in years to come."
Profits and cash flows will initially be retained within the business to construct two new barns on the reserve by year five of production. The operation will then be moved onto the reserve.
Future profits will be used for other economic development initiatives.
"K'atlodeeche First Nation currently operates a grocery store and gas bar, bulk food outlet and industrial park," said Chief Roy Fabian.
"Expansion into the agriculture industry will help to diversify our economy and build capacity within the First Nation," Fabian said.
The $1.8-million purchase price for the facility includes a 46,000 layer quota complete with land, buildings, equipment and initial operating costs.
KFN purchased the assets of Northern Eggs Ltd. from Frank Richardson, Marjorie Richardson and two numbered companies.