The congregation size continued to increase and soon a new church was  required.  Peter Dennie donated land for the future site of the church and after Father Mulligan staked out the boundaries of the church's lot, the basement of the building was constructed.  Church services and activities were held in the basement until May 19, 1959.  At this time, the congregation decided to tear down the existing structure and build the new church on the former site.  During construction, masses were held in the Audion Theatre (formerly the Imperial Theatre) until in December of 1959, the church was finally completed.

Our Lady of Peace Church was opened on December 24, 1959 with the Midnight Mass celebrating Christmas Eve.  The dedication was held on October 2nd of the following year and the church was blessed by Bishop Alex Carter.

The new building featured a main floor (with seating for 520) and a balcony (with seating for 80).  It also contained a Priest's Sacristy, an Altar Boys' Sacristy, a flower room, and a children's cry room.  The church hall was located in the basement and contained a kitchen, stage, and showers.  A P.A. system was wired throughout the entire building.

In 1989, an elevator and a ramp were installed to make the church more accessible to the disabled.

Our Lady of Peace Church serves as a memorial for two beloved priests, Father James Mulligan and Father Hilary A. O'Neill.  Today, the church on Dennie Street serves an important role in meeting the spiritual needs of Capreol's Roman Catholic community.

Material compiled from Capreol: The First 75 Years, 1918-1993 and The History of the Town of Capreol.