CEMEX, Inc. (NYSE-CX) and Polaris Minerals Corporation (TSX-PLS) today announced that they have entered into a long-term supply and distribution agreement for marine transported construction aggregates in the states of California, Oregon and Washington. For this three state area, the parties have agreed that CEMEX will be the exclusive marketer for Polaris and Polaris will be the exclusive supplier to CEMEX of marine transported construction aggregates for CEMEX's internal use and for sales by CEMEX to third parties. Polaris has already commenced sand and gravel shipments from the Orca Quarry to the two existing CEMEX terminals in San Francisco Bay. In addition, the two companies have entered into an alliance for the development of future construction aggregates import terminals in the same territory.
Included in the strategic alliance is an expectation that Polaris will develop its 70 percent owned Eagle Rock Quarry at a time to be determined by market demand. The parties have agreed to cooperate in the pursuit of markets and terminal capacity for Eagle Rock crushed granite products. The existing Polaris construction aggregate supply and distribution agreement covering the four northern California counties of Marin, Sonoma, Mendocino and Napa is unaffected by this alliance.
"In a market where the long-term availability of construction aggregates is not assured, the realization of this transaction with Polaris secures the availability of high quality aggregates for our customers as well as our affiliate ready-mix operations for many years ahead," said Gilberto Perez, President of CEMEX USA.
Commenting on this new relationship, Marco Romero, President & CEO, Polaris Minerals Corporation, said, "Since the creation of Polaris, we have focused on three principal elements in order to achieve our business plan: the ownership of high quality and long-term aggregate resources, the securing of cost effective shipping capacity, and the establishment of gateways into the market through strategically located port terminals. Through this landmark agreement with CEMEX, we have made a quantum leap in the third vital component. As a result, we now expect that the anticipated volume of sales through existing terminals, coupled with the expectation of new terminal development in southern California and sales to existing customers, should exceed our earlier sales projections for the Orca Quarry, all at market prices. Additionally, we are closer to making the Eagle Rock Quarry a reality." He continued, "CEMEX is a leading consumer, producer and distributor of construction aggregates in California and, in common with other major companies in the aggregate industry, relies on the availability of long-term high quality aggregate resources to best serve its customers. At a stroke, both Polaris and CEMEX have achieved many strategic objectives and we look forward to a long and mutually rewarding relationship with our new partner."
Polaris will host a conference call at 7 a.m. PDT on Wednesday, September 26. Investors and other interested parties may access the teleconference live by calling 416.644.3420, or 800.595.8550 in North America or internationally, and 00.800.2288.3501 from the United Kingdom.
A live Web cast of the conference call will be available through the link below:
The Web cast will be archived for 90 days following the call.
The conference call will be recorded and available for replay from Wednesday, September 26 at 9:00 a.m. PDT and will be available until Wednesday, October 10. In North America, dial 877.289.8525 and for international calls, dial 416.640.1917. The access code to hear the recording is 21248339#.
CEMEX is a growing global building materials company that provides high quality products and reliable service to customers and communities in more than 50 countries throughout the world. CEMEX has a rich history of improving the well-being of those it serves through its efforts to pursue innovative industry solutions and efficiency advancements and to promote a sustainable future. For more information, visit www.cemexusa.com.
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 west coast of North America to meet growing local supply deficits.
This press release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions. Many factors could cause the actual results, performance or achievements of CEMEX to be materially different from those expressed or implied in this release, including, among others, changes in general economic, political, governmental and business conditions globally and in the countries in which CEMEX does business, changes in interest rates, changes in inflation rates, changes in exchange rates, the level of construction generally, changes in cement demand and prices, changes in raw material and energy prices, weather conditions, changes in business strategy and various other factors. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described herein. CEMEX assumes no obligation to update or correct the information contained in this press release.
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