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