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.
View original content: http://www.newswire.ca/en/releases/archive/June2019/05/c5900.html
Katelynn Thissen, NATIONAL Capital Markets, 416-848-1427, kthissen@national.caCopyright CNW Group 2019
