MINNEAPOLIS, MN, June 5, 2019 /CNW/ - Ceres Global Ag Corp. (TSX:
CRP) ("Ceres" or the "Company") announced today it has formally
established a 50/50 joint venture ("JV") with Steel Reef
Infrastructure Corp. ("Steel Reef") focused on the transloading of
hydrocarbon products for movement between the US and Canada. The JV's facilities will be located at
Ceres' Northgate, Saskatchewan
rail terminal ("Northgate"), a BNSF-served location ideally
situated to facilitate rail movements between the Canadian and US
markets. The JV, which will be named in the near future, is
expected to commence operations as of July
1, 2019. This announcement follows the
previously-disclosed news that the parties had executed a letter of
intent regarding the JV.
The JV's facilities are being developed as a world-class
hydrocarbon rail terminal, leveraging Northgate's extensive
existing rail infrastructure to utilize high-speed loading
facilities and future pipeline service to provide market access for
the growing supply of natural gas liquids ("NGLs") produced in the
U.S Bakken and the Western Canadian Sedimentary Basin. The
JV's facilities will operate as an open terminal, providing
transloading and logistics services to the general
marketplace.
"The creation of the JV significantly enhances our
competitiveness in the North American NGL market, a critical piece
of our strategy to develop Northgate into a highly competitive
transportation hub for energy products" said Robert Day, President and Chief Executive
Officer of Ceres. "We are excited about partnering with Steel
Reef. With some of the best talent in the
industry, aggressive development of infrastructure in
Canada, and strong industry
relationships, Steel Reef is the ideal partner for Ceres in
this venture. By leveraging the complimentary and combined
strengths of Ceres and Steel Reef, the JV
will provide customers
with industry-leading cost competitive market rail access
between the U.S. and Canada."
Steel Reef has advised that the JV relationship with Ceres will
allow it to develop a highly desirable rail terminal that will
provide a valuable service to its Saskatchewan and North Dakota energy customers levering the
parties' collective technical expertise and operational
performance, to deliver an alternative for natural gas liquids
egress.
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through its network of commodity logistics centers and team of
industry experts, Ceres procures and supplies North American
agricultural commodities and value-added products, industrial
products, fertilizer, energy products and reliable supply chain
logistics services to customers worldwide.
Ceres operates five locations, Duluth,
MN; Minneapolis, MN;
Shakopee, MN; Northgate,
Saskatchewan; and Port Colborne, Ontario, and is headquartered
in Minneapolis, MN. Its facilities
throughout North America have an
aggregate grain and oilseed storage capacity of approximately 29.7
million bushels.
Ceres also has a 50% interest in Savage Riverport, LLC, a joint
venture with Consolidated Grain and Barge Co., a 25% interest in
Stewart Southern Railway Inc., a short-line railway located in
southeast Saskatchewan with a
range of 130 kilometers, and a 17% interest in Canterra Seed
Holdings Ltd, a Canadian-based seed development company.
About Steel Reef Infrastructure Corp.
Steel Reef is a midstream company focused on strategically
partnering with oil and gas exploration, development and production
companies to develop a portfolio of midstream assets, through
acquisition or construction, with a view to generating a regular
dividend for its investors. For more information, please
visit www.steelreef.ca.
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 further
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 MD&A for the
period ended March 31, 2019. 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.