Ceres Global Ag Corporation Announces Closing of Transaction to Sell its Manitowoc Grain Storage Facility
TORONTO, May 26, 2014 /CNW/ - Ceres Global Ag Corp. ("Ceres" or the "Company") (TSX: CRP) today announced that its 100% owned subsidiary, Riverland Ag Corp., has closed the transaction to sell its Manitowoc, Wisconsin grain storage facility to Briess Malt and Ingredients Company of Chilton, Wisconsin.
Ceres received $6.1 million in gross proceeds from the sale of the Manitowoc facility. Under the terms of the sale, Ceres, through Riverland, will lease back from Briess one million bushels of storage capacity at Manitowoc for a three-year term. The proceeds will be put toward the funding of the company's Northgate Project.
"This is a key milestone in our plan to transform Riverland into an active grain trading and merchandising company, while optimizing Riverland's grain elevator capacity through selective asset sales," said Michael Detlefsen, President and CEO of Ceres. "It is also a critical step in re-allocating capital to fund ongoing construction initiatives at Northgate."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Ceres Global Ag Corp. is a Toronto‐based company focused on two primary businesses: a Grain Storage, Handling and Merchandising unit, anchored by its 100% ownership of Riverland Ag Corp., and a Commodity Logistics unit, containing its 25% interest in Stewart Southern Railway Inc. and its development of the Northgate, SK Commodity Logistics Centre. Riverland Ag Corp. is a collection of nine (9) grain storage and handling assets in Minnesota, New York, and Ontario having aggregate storage capacity of approximately 48 million bushels. Riverland Ag also manages two (2) facilities in Wyoming on behalf of its customer‐owner. Stewart Southern Railway Inc. is a short-line railway with a range of 130 kilometres that operates in South‐eastern Saskatchewan. The Northgate Commodity Logistics Centre is a proposed $90 million grain, oil and oilfield supplies transloading site being developed in conjunction with Riverland Ag and several potential energy company partners, connected to BNSF Railway.
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