TORONTO, Feb. 26, 2015 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") announces it has approved plans to expand capacity at its planned 2.2 million bushel high speed grain elevator at the Northgate Commodity Logistics Centre ("Northgate"). The expansion initiative is designed to enhance Ceres' soybean crop handling and oilseeds merchandising operations at Northgate.
The expansion will incorporate the construction of an additional steel storage bin and is projected to add up to 430,000 bushels of incremental grain storage and handling capacity for soybeans and canola at Northgate, resulting in total capacity of 2.7 mm bushels. The expansion project is expected to incur a cost of $3.4 million (or $7.95 per bushel of capacity added). The additional bin will be integrated into the planned design of the high speed grain elevator, which is expected to be completed in full by March 2016.
"The expansion will translate into diversifying our grain handling and storage capabilities at Northgate," stated CEO Patrick Bracken. "We anticipate the build out for additional grain and oilseed commodity products could also introduce the potential for margin enhancement within our trading and merchandising operations."
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 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 South-eastern Saskatchewan. The Northgate Commodities Logistics Centre is a proposed $96 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.
SOURCE Ceres Global Ag Corp.
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