VANCOUVER,
Dec. 3, 2012 /PRNewswire/ -
Polaris Minerals Corporation (TSX: PLS) announces that the sale
of its jointly owned freehold land on Pier B in the port of
Long Beach, CA, has now closed.
Net cash receipts to the Company of $12.4
million will be used to reduce outstanding debt by
$5 million, pay deferred interest,
and for general working capital purposes. The Company has also
entered into a three year supply agreement with a new, third party,
customer commencing during the first quarter next year. Sales under
the agreement will be made F.O.B. at Orca Quarry. Although volumes
are not guaranteed, the agreement is expected to contribute towards
a continued increase in sales during its term.
Herb Wilson,
President and CEO, commented: "We are very pleased to have
completed the sale of the Pier B land, which had become surplus to
requirements as a consequence of securing the lease of an
established aggregate importation site in the same port. This
alternate site offers the most cost effective way for the Company
to eventually penetrate the massive Los
Angeles Basin market."
Mr. Wilson also commented on the additional
supply agreement, saying: "Polaris has benefited from the recovery
in construction activity in the San Francisco Bay area, that began
mid-2011, by a combination of product quality and reliable shipping
and distribution. These vital attributes have enabled the Company
to secure another new third-party customer who will be purchasing
Orca aggregate products on a 'free-on-board' basis at the quarry
and contributing to the expected growth in sales."
Polaris Minerals Corporation is
exclusively focused on the development of quarries and the
production of construction aggregates in British Columbia for marine transport to urban
markets on the Pacific coasts of North
America to meet growing local supply deficits. In 2007,
Polaris began shipping sand and gravel from the Orca Quarry to San
Francisco Bay, Vancouver and
Hawaii.
This press release contains "forward-looking
statements" and "forward-looking information" within the meaning of
applicable securities laws. These statements and information
appear in this document and include estimates, forecasts,
information and statements as to management's expectations with
respect to, among other things the future financial or operating
performance of the Company, costs and timing of the development of
the construction aggregate quarry, the timing and amount of
estimated future production, costs of production, capital and
operating expenditures, requirements for additional capital,
government regulation of quarrying operations, environmental risks,
reclamation expenses, and title disputes. Often, but not
always, forward-looking statements and information can be
identified by the use of words such as "may", "will", "should",
"plans", "expects", "intends", "anticipates", "believes", "budget",
and "scheduled" or the negative thereof or variations thereon or
similar terminology. Forward-looking statements and
information are necessarily based upon a number of estimates and
assumptions that, while considered reasonable by management, are
inherently subject to significant business, economic and
competitive uncertainties and contingencies. Readers are
cautioned that any such forward-looking statements and information
are not guarantees and there can be no assurance that such
statements and information will prove to be accurate and actual
results and future events could differ materially from those
anticipated in such statements. Important factors that could
cause actual results to differ materially from the Company's
expectations are disclosed under the heading "Risks and
Uncertainties" in the Company's Annual Report and under the heading
"Risk Factors" in the Company's Annual Information Form (AIF) in
respect of its financial year-ended December
31, 2011, both of which are filed with Canadian regulators
on SEDAR (www.sedar.com). The Company expressly disclaims any
intention or obligation to update or revise any forward-looking
statements and information whether as a result of new information,
future events or otherwise. All written and oral
forward-looking statements and information attributable to us or
persons acting on our behalf are expressly qualified in their
entirety by the foregoing cautionary statements.
SOURCE Polaris Minerals Corporation