Polaris to purchase land in the Port of Long Beach, Californiaadmin
Tuesday, August 5th 2008
Polaris Minerals Corporation announced that its subsidiary, Eagle Rock Aggregates Inc., (ERA) has satisfactorily completed its due diligence review of a parcel of land at Pier B, in the Port of Long Beach, California, and will complete the purchase for US$15.18 million. The transaction is scheduled to close on or about August 18, 2008.
With this investment, ERA will own a 66% interest in the 12.4 acre Pier B parcel of land, with its strategic alliance partner owning the remaining 34%. Following the closing of this land purchase, the alliance will secure, subject to obtaining all necessary permits, a strategic port site intended to become a major marine aggregate receiving and distribution terminal. The first phase of development will entail a sand and gravel receiving terminal that will supply products from the Orca Quarry to the massive Los Angeles market. The second phase of the development is expected to be the construction of an additional aggregate terminal to receive granite from the proposed Eagle Rock Quarry.
Marco Romero, President and CEO of Polaris said: “We are delighted to be acquiring this unique parcel of freehold land in the Port of Long Beach. It is strategically located close to Highway 710 and will provide excellent access to the greater Los Angeles metropolitan area, the largest market for construction aggregates on the west coast of North America. We will now concentrate on the permitting and development of a highly efficient and environmentally progressive facility, which could make possible the commencement of sand and gravel distribution by the beginning of 2011.”
Mr. Romero continued, “We also anticipate that the acquisition of the Pier B land will play an important part in facilitating the development of our proposed Eagle Rock Quarry, on which we are currently conducting a feasibility study.”
Polaris intends to finance its portion of the purchase price through a CAD$20 million one-year bridge loan facility arranged by GMP Investment Management L.P.
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 high-quality sand and gravel from the Orca Quarry to San Francisco Bay, Vancouver, and Hawaii.