Polaris Minerals Corporation and CSL International Reach Agreement on the Restructuring of Shipping Contracts
March 27, 2009
Polaris Minerals Corporation today announced that a commercial agreement, benefitting both parties, has been reached with CSL International. The agreement includes extending the Company's first shipping contract by five years, to now expire in July 2022 and delaying the commencement of the second contract until the beginning of 2014.
CSL International is the exclusive shipper of sand and gravel from the Polaris majority-owned Orca Quarry situated near Port McNeill on Vancouver Island, British Columbia. During 2008, the quarry's first full year of production, CSL's self-discharging Panamax vessels carried 2.0 million tons of Orca products, the majority of which were shipped to Northern California.
Herb Wilson, President and CEO, Polaris Minerals Corporation, said: "This agreement reflects a cooperative approach to the adjustment of commitments recognizing that since 2006 the demand for construction aggregate in California has been significantly reduced by the economic recession. We now believe that action taken by the Federal and California State Governments will gradually begin to positively impact construction aggregate demand and we are pressing ahead with plans for additional aggregate receiving terminals in North America in order to fulfill the business plan". He added: "CSL has been fully involved in the underlying assumptions which have led to the revised growth timeframe and flexibility exists to bring forward shipping capacity should future market conditions warrant".
Polaris Minerals Corporation is exclusively focused on the development of quarries and the production of construction aggregates on Vancouver Island, British Columbia, for marine transport to urban markets on the west coast 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.
For more information, please contact:
Herb Wilson, President and CEO
Mike Westerlund, Director, Corporate Development
Polaris Minerals Corporation.
Cautionary Note Regarding Forward-Looking Statements
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 "Risk Factors" in the Company's final prospectus dated December 31, 2008, which is filed with Canadian regulators on SEDAR (www.sedar.com). Except as required by law, 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.