POLARIS STRENGTHENS CASH RESERVES AND ADVANCES LAND SALE
VANCOUVER, Nov. 9 /PRNewswire-FirstCall/ - Polaris Minerals Corporation (TSX:PLS) today announced that it has secured a Cnd$5 million, non-revolving secured term loan to be used for working capital and general corporate purposes. The Company is also pleased to announce that its subsidiary, Cemera Long Beach, LLC, has now entered into a Purchase and Sale Agreement for the sale of its freehold land at Pier B, within the Port of Long Beach, at a price of US$22.75 million.
The one year, second priority, term loan, provided by a private syndicate of lenders, has a 15% coupon. The lenders have a one-time option to require repayment of the loan, when the Company sells the Pier B land, at the face value of the note plus accrued interest. The Company can repay the loan at any time at the face value of the note plus accrued interest with a 5% interest penalty. The Company will issue 625,000 common share purchase warrants to the lenders, exercisable at a price of $1.50 per share for a period of five years.
The Purchase and Sale Agreement of the Pier B land is subject to the satisfactory completion of due diligence by the purchaser and closing is anticipated by the end of January 2011. Net proceeds to the Company, after selling costs, are expected to be approximately US$14.0 million of which US$1 million will be used to reduce the outstanding debt with CSL.
Herb Wilson, President & CEO of Polaris, said: "The one year term loan addresses the Company's liquidity while we await the completion of the Pier B land sale for which we have high expectations. We are also continuing with negotiations in respect of the promissory note held by the Company that would further improve the cash position. These steps should provide a significant measure of stability to our situation while we await the much anticipated recovery in the construction markets".
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, 2009, 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