Ceres Global Ag Corp. Announces Agreement with Koch Fertilizer
Nov 17, 2015, 07:00 ET
TORONTO and WICHITA, KS, Nov. 17, 2015 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") announced today that it has entered into an agreement with Koch Fertilizer Canada, ULC ("Koch"), for the storage and handling of dry fertilizer products at Ceres' Northgate Commodities Logistics Centre in Northgate, Saskatchewan at the Canada-United States border.
Once constructed, the Ceres facility will include three storage bays with a total capacity of approximately 26,000 short tons. Koch will have exclusive use of the facility upon its completion in May of 2017.
"This agreement with Koch is an important milestone in our build-out of the Northgate facility," stated Patrick Bracken, chief executive officer of Ceres. "The addition of fertilizer to the suite of commodities that we are able to handle at Northgate will further diversify and grow our revenue at this facility. In addition, we expect that Ceres' ability to offer fertilizer distribution will make Northgate a more attractive destination for farmers to sell their grain. The opportunity for farmers to backhaul fertilizer is expected to increase Northgate's draw area in Saskatchewan and Manitoba for grain origination."
"We continue to look for innovative ways to provide a portfolio of fertilizer products to our customer base," said Todd Minnihan, managing director, for Koch Fertilizer Canada, ULC. "The relationship with Ceres will help Koch serve the needs of our Western Canadian customers."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Ceres Global Ag Corp. is a TSX-listed 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 47 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 Southeastern Saskatchewan. The Northgate Commodities Logistics Centre is a state-of-the-art grain, oil and oilfield supplies transloading site being developed in conjunction with Riverland Ag and several potential energy company partners, connected to BNSF Railway.
About Koch Fertilizer
Koch Fertilizer, LLC and its affiliates own or have interests in nitrogen fertilizer plants in the United States, Canada, and Trinidad and Tobago. The companies cover global demand through state-of-the-art terminals in the U.S., Canada, Mexico, Brazil, Australia, France and the United Kingdom. Koch Fertilizer, LLC and its affiliates have the capability to market and distribute more than 13 million tons of fertilizer products annually. Koch Fertilizer, LLC is a subsidiary of Koch Ag & Energy Solutions, LLC. Learn more about Koch Fertilizer, LLC at www.kochfertilizer.com.
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, including the plans, costs, timing and capital for the development of the Northgate Commodities Logistics Centre, expectations or projections about the future, strategies and goals for growth, expected and future cash flows, costs, planned capital expenditures, regulatory change, general economic political and market conditions anticipated capital projects, construction and completion dates, operating and financial results, critical accounting estimates, 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", "may have implications" 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 ended December 31, 2014. 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 ability of Ceres to successfully defend the claim by The Scoular Company, 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.
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