NORTHGATE, SK, May 9, 2014 /CNW/ - Ceres Global Ag Corp. ("Ceres" or the "Company") (TSX:CRP) today announced that it is exploring a full range of financing alternatives for an appropriate capital structure to fund the development of the Northgate Commodity Logistics Hub ("Northgate").
The Board of Directors has established a special committee (the "Special Committee") comprised of five directors that will lead the review process, and the Company has retained a financial advisor to assist with the process.
Northgate is a grain, oil and oilfield supplies transloading site in southern Saskatchewan that connects to the Burlington Northern Santa Fe Railway ("BNSF"). Northgate will offer Canadian farmers and oil producers a new cost-competitive point-of-entry into the United States, the largest market in the world. Construction at Northgate is expected to re-start shortly with the opening of the summer construction season and continue through 2014 and 2015.
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 ten (10) grain storage and handling assets in Minnesota, New York, Wisconsin and Ontario having aggregate storage capacity of approximately 51 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.
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 includes, but is not limited to, information concerning the proposed construction of the Northgate, Saskatchewan logistics hub by Ceres and matters relating thereto. 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 "will", "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. Assumptions upon which such forward-looking information is based include, without limitation, that construction will be completed on time and on budget, all necessary regulatory permits and approvals will be obtained and appropriate financing can be put in place. Many of these 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 unanticipated construction delays, weather, changes in environmental and other laws and regulations, competitive factors in agricultural sectors, labour, equipment and material costs, delays in obtaining necessary regulatory permits or approvals, unexpected increases in the budgeted capital cost, inability to secure appropriate financing for the Northgate project or the inability to negotiate efficient border processes going forward. 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:
Ceres Global Ag Corp. Investor Relations inquiries:
(416) 815‐0700 ext. 238
Northgate Commodities Logistics Hub Media inquiries:
(416) 864‐7112 ext. 2233