TORONTO, June 2, 2015 /CNW/ - Ceres Global Ag Corp.
("Ceres" or the "Company") (TSX: CRP) announced today that it has
entered into an agreement to sell its Electric Steel grain facility
in Minneapolis, Minnesota, to the
University of Minnesota for gross
proceeds of US$1,450,000. The
transaction is subject to final approval by the University's Board
of Regents.
The Corporation is expecting to close on the sale in the first
quarter of fiscal 2016. As of March 31,
2015, 2015, the carrying value of the related facility's
property, plant and equipment totaled approximately US$1,300,000 (CAD$1,643,460).
"This divestiture of a non-strategic asset will provide us with
capital we can deploy towards the development of core assets
including our high-potential Northgate commodities logistics centre
in Northgate, Saskatchewan," said
Ceres chief executive officer Patrick
Bracken.
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.
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 year and quarter ended March 31, 2015. 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.