Ceres Global Ag Corp. announces strategic sourcing relationship with Briess Industries Inc.

TORONTO, March 11, 2013 /CNW/ - Ceres Global Ag Corp. ("Ceres" or the "Corporation") is pleased to announce a strategic sourcing relationship between its 100% owned subsidiary, Riverland Ag Corp. ("Riverland Ag"), and Briess Industries Inc. ("Briess Industries").

In September 2010, Riverland Ag acquired a grain handling facility based in Ralston, Wyoming having storage capacity of 2.3 million bushels. This facility principally handles locally sourced barley. Riverland Ag also sources, stores and merchandises barley through a number of its Upper Midwest facilities.

Over the last few years, Riverland Ag has deepened its customer relationship with Briess Industries, North America's leading producer of specialty malts and value added ingredients for the brewing, distilling, food and pet food industries.

Under the strategic sourcing relationship, Briess Industries will acquire the Ralston elevator facility including the Powell, Wyoming seed plant for US$ 12.4 million. Riverland Ag will manage the facility on behalf of Briess Industries for a minimum of three years. The majority of the facility's barley shipments will be to Briess Industries, with the balance being sold to the facility's other existing customers. Riverland Ag will receive a monthly management fee and a contingency payment of between $1.125 million and $1.5 million in 2016 subject to certain contracted barley targets being met. Processing of sales to the facility's other customers will be to the account of Riverland Ag. Briess will assume the majority of the working capital obligations of the facility going forward, and will continue to be an important customer of Riverland Ag's U.S. Upper Midwest facilities. Ceres will recognize a gain on the sale of the two facilities in the fourth quarter.  Closing of the transaction is expected on or before March 15, 2013

"We are pleased to be taking our longstanding relationship with Briess to the next level - this strategic sourcing relationship maximizes the long-term value to both parties of the Ralston elevator and reflects the strategic value inherent in our Riverland Ag assets", said Michael Detlefsen, President of Ceres and Executive Chairman of Riverland Ag.

"We are delighted to be working closely with Riverland Ag on our barley sourcing requirements and to be securing a long-term supply of malting barley in one of the top barley growing regions in America," said Gordon Lane, President of Briess Industries.

Craig Reiners, the President & CEO of Riverland, added, "Our deeper strategic relationship with Briess will further enhance the upstream relationships we have built with the farmers of  Wyoming and Montana, and will increase the utilization of several other Riverland assets in the Upper Midwest".

About Ceres Global Ag Corp.  Ceres Global Ag Corp. is a Toronto-based corporation with two main operating divisions: its Grain Handling and Storage unit, anchored by its 100% ownership of Riverland Ag Corp.; and its Commodity Logistics unit, containing its 25% interest in Stewart Southern Railway Inc. and its development of the Northgate, SK Commodity Logistics Hub. Ceres also has significant capital available to invest in these and related businesses. Riverland Ag Corp. is an agricultural grain storage and handling and supply chain business operating 12 grain storage facilities in Minnesota, North Dakota, New York, Wisconsin and Ontario having aggregate storage capacity of approximately 51 million bushels.  Stewart Southern Railway Inc. is a short line rail company that operates in Southeastern Saskatchewan as our commodities logistics division. The Northgate Commodity Logistics Hub is a $90 million grain, oil and oilfield supplies transloading site being developed in conjunction with Scoular Grain and several energy company partners, connected to the Burlington Northern Santa Fe Railroad and expected to open in the fall of 2013. Ceres common shares trade on the Toronto Stock Exchange under the symbol "CRP".

Cautionary Notice: This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation and United States securities laws. Forward-looking information may include, but is not limited to, statements regarding future operations and results, anticipated business prospects and financial performance of Ceres and its subsidiaries, expectations or projections about the future, strategies and goals for growth, expected and future cash flows, costs, planned capital expenditures, anticipated capital projects, construction and completion dates, operating and financial results, critical accounting estimates and the expected financial and operational consequences of future commitments. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", "believes" or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might", or "will be taken", "occur", or "be achieved". Forward-looking information is based on the opinions and estimates of management at the date the information is made, and is based on a number of assumptions and subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information.  Key assumptions upon which such forward-looking information is based are listed in the "Forward-Looking Information" section of the interim MD&A for the quarter and nine-month period ended December 31, 2012.  Many such assumptions are based on factors and events that are not within the control of Ceres and there is no assurance they will prove to be correct. Factors that could cause actual results to vary materially from results anticipated by such forward-looking information include, among others, risks related to weather, politics and governments, changes in environmental and other laws and regulations, competitive factors in agricultural, food processing and feed sectors, construction and completion of capital projects, labour, equipment and material costs, access to capital markets, interest and currency exchange rates, technological developments, global and local economic conditions, the ability of Ceres to successfully implement strategic initiatives and whether such strategic initiatives will yield the expected benefits, the operating performance of the Corporation's assets, the availability and price of commodities and regulatory environment, processes and decisions. Although Ceres has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking information, there may be other factors that cause actions, events or results that are not anticipated, estimated or intended. There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Ceres undertakes no obligation to update forward-looking information if circumstances or management's estimates or opinions should change, except as required by applicable securities laws. The reader is cautioned not to place undue reliance on forward-looking information.

SOURCE: Ceres Global Ag Corp.

For further information:

Jason Gould, Chief Financial Officer, at (416) 915-2426.


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