Polaris Updates Richmond Terminal Progress
August 23, 2006
VANCOUVER, British Columbia – Polaris Minerals Corporation (TSX:PLS) confirms that its subsidiary company, Eagle Rock Aggregates Inc., has received a Building Permit for the construction of its aggregates receiving, storage and distribution terminal in the City of Richmond, San Francisco Bay. The construction costs of the redesigned facility are now estimated to be US$27.4 million, a reduction of US$9.1 million, or 24.9%, from previous estimates.
Negotiations are now well advanced with the two principal contractors, Hayward Baker Inc. for the ground remediation and foundation works, and Terra Nova Technologies, Inc. for the mechanical, building and electrical installations. Both contractors are well-recognized in their respective fields, with considerable experience in the State of California. The projected cost includes US$0.5 million expended since January 2006 for professional fees arising from the redesign of the facility and preparing the building permit application, and also includes allowances for dredging of the ship berth and the purchase of mobile equipment. It is anticipated that work will commence on site by the end of September 2006 and that the construction period will be nine months. Financing for the construction will be provided from the Company’s US$31 million debt facility, the first draw down from which is expected to take place in September.
Marco Romero, the Company’s President and Chief Executive Officer, commented: “We are pleased to be achieving these significant capital cost savings through the extensive redesign which will only delay the anticipated start-up date by about three months. Meanwhile, other third party market opportunities are advancing, which we believe will allow our 2007 sales forecasts to be achieved. The Richmond facility represents a rare opportunity to develop a long term strategic gateway into the important San Francisco Bay market.”
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates in British Columbia for marine transportation to urban markets on the west coast of North America to meet growing local supply deficits.
For further information, please contact:
Marco Romero, President and CEO
Polaris Minerals Corporation
Tel: (604) 915-5000
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, 2005, 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.