TORONTO, May 26, 2014 /CNW/ - Ceres Global Ag Corp. ("Ceres" or the
"Company") (TSX: CRP) today announced that its 100% owned subsidiary,
Riverland Ag Corp., has closed the transaction to sell its Manitowoc,
Wisconsin grain storage facility to Briess Malt and Ingredients Company
of Chilton, Wisconsin.
Ceres received $6.1 million in gross proceeds from the sale of the
Manitowoc facility. Under the terms of the sale, Ceres, through
Riverland, will lease back from Briess one million bushels of storage
capacity at Manitowoc for a three-year term. The proceeds will be put
toward the funding of the company's Northgate Project.
"This is a key milestone in our plan to transform Riverland into an
active grain trading and merchandising company, while optimizing
Riverland's grain elevator capacity through selective asset sales,"
said Michael Detlefsen, President and CEO of Ceres. "It is also a
critical step in re-allocating capital to fund ongoing construction
initiatives at Northgate."
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 48 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.
SOURCE Ceres Global Ag Corp.