Ceres Global Ag Corp. to Form Grain Joint Venture with Cooperative in Thief River Falls, MN
MINNEAPOLIS, Nov. 30, 2020 /CNW/ - Ceres Global Ag Corp. (TSX: CRP) ("Ceres" or the "Corporation") today announced that its wholly owned subsidiary, Riverland Ag Corp. ("Riverland") has entered into an agreement with Farmer's Co-op Grain and Seed Association ("FCGS"), an agricultural cooperative based in Thief River Falls, Minnesota, to form a grain merchandising joint venture to be based in Thief River Falls (the "Joint Venture"). FCGS will contribute its existing grain elevator and related grain merchandising assets in Thief River Falls to the Joint Venture, with Riverland contributing cash. The transaction is expected to close in January 2021. Following closing, the Joint Venture will undergo an expansion project designed to enable loading unit trains. The facility will be serviced by Canadian Pacific (CP) and FCGS will continue to operate its non-grain merchandising businesses independent of the operation of the Joint Venture.
"The formation of this Joint Venture marks a meaningful step in our broader strategy to increase core product origination directly from growers, including the Thief River Falls area in particular" said Mr. Robert Day, President and Chief Executive Officer at Ceres. "We look forward to partnering with the hundreds of growers who make up FCGS and working closely with the CP to efficiently market growers' products and create value for our downstream customers."
"Adding storage and rail loading capabilities to our elevator in Thief River Falls is a critical step FCGS must take in order to maintain its market competitiveness, both for today and into the future" said Mr. Darwin Klamar, President of FCGS's board. "With Riverland's expertise in managing railroad programs and providing destination market access, FCGS will be well positioned to serve the needs of its growers and patrons for decades to come."
"CP looks forward to servicing this high-throughput facility, which will meet our 8,500-foot High Efficiency Product standards," says Joan Hardy, CP Vice-President Sales and Marketing, Grain and Fertilizers. "We commend Riverland Ag and Farmer's Co-op Grain and Seed Association on moving this project forward, enhancing the grain handling capacity in this region."
About Ceres Global Ag Corp. (ceresglobalagcorp.com)
Through its network of commodity logistics centers and team of industry experts, Ceres merchandizes high-quality North American agricultural commodities and value-added products and provides reliable supply chain logistics services to agricultural, energy and industrial customers worldwide.
Ceres is headquartered in Minneapolis, MN and together with its wholly owned affiliates, operates 13 locations across Saskatchewan, Manitoba, Ontario, and Minnesota. These facilities have an aggregate grain and oilseed storage capacity of approximately 31 million bushels.
Ceres also has a 50% interest in Savage Riverport, LLC, a joint venture with Consolidated Grain and Barge Co., a 50% interest in Gateway Energy Terminal, an unincorporated joint venture with Steel Reef Infrastructure Corp., 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 Canada-based seed development company.
About Farmer's Co-op Grain and Seed Association (farmerscooptrf.com)
Established in 1940, FCGS provides a broad range of agricultural products and services to producers, customers and patrons, including grain merchandising and storage, agronomy services, seed products and trucking services. FCGS' patron base consists of over 400 growers across a 3-county area.
Cautionary Notice: This news release may contain "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 the timing and completion of the Private Placement and the proposed use of proceeds. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "expects," "intends," "anticipates," "believes" or variations of such words and phrases or statements that certain actions, events or results "may," "could," "would" or "might," "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. 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.
Trevor Heisler, NATIONAL Capital Markets, (416) 848-1434, [email protected]
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