Deadline extended: shares for inland terminal still for sale

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Published: September 1, 1994

SASKATOON – Inland terminal promoters are hoping more time will translate into more money for grain-handling projects proposed for Unity and Moosomin.

North West Terminal Ltd. has been given another three months to raise the minimum target of $1.75 million to build a 15,000-tonne terminal at Unity, about 200 kilometres west of Saskatoon.

The Saskatchewan Securities Commission agreed to the company’s request to extend the share offering to Oct. 28. At the original July 29 deadline, a little less than $1 million worth of common shares had been sold.

Company president Bob Cumming said he remains confident the money will be raised with some construction possible this fall.

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“I think we’ll see more interest once people get into harvest and see what kind of crop they have, and right now the crops are pretty decent,” he said.

Meanwhile, Mainline Terminal Ltd. of Moosomin, Sask., has asked the securities commission to extend its deadline for selling $1.5 million in shares and bonds to Jan. 28 from Aug. 29.

Moosomin is on the TransCanada Highway, about 15 kilometres from the Manitoba border.

Mainland executive manager Lyle Severson said about $500,000 has been raised so far, adding that many potential investors are calling this the worst time of year for cash flow.

The minimum purchase is $4,000, which buys 40 shares or convertible bonds.

“They say they’ll buy after harvest,” he said. “We’re hoping that’s true.”

Several established grain companies are talking with Mainline about joining the project, which Severson said should assure the project goes ahead, even if there aren’t enough shares sold to individual farmers or business people to achieve the minimum.

He declined to identify which grain handlers are involved in negotiations.

Farmers commit to space

Cumming said about 225 farmers have invested an average of about $5,000 each in the North West project. Investors must buy at least 25 of the $100 shares. Farmers have also made commitments to buy 440,000 bushels of condominium storage space. That’s worth another $880,000, although farmers need only pay a 20 percent deposit up front.

If it looks like the company will fall short of the $1.75 million mark, it could reduce the target, but that would be a last resort, said Cumming.

“The more we can raise, the better, because the less debt we have, the more profitable it is,” he said.

Meanwhile, two other terminal projects in their infancy have made good progress recently.

A group that wants to build an elevator at Watrous, Sask., about 70 kms southeast of Saskatoon, easily met its July 29 deadline to raise at least $60,000 to finance a feasibility study and business plan.

Spokesperson Joyce Brennan said $131,400 worth of preferred shares were sold to 238 shareholders in just three weeks. If all goes according to plan, common shares will be offered to the public in November.

South West Terminal Ltd. of Gull Lake, Sask., had no trouble selling its minimum offering of $86,000 by Aug. 31. But the company has received an extension to Sept. 30 in order to get closer to the maximum of $150,000.

“We feel we need some extra funds to carry the project through until we can start selling common shares,” said president Ernie Sommer, adding he believes the offering will reach at least $130,000.

Gull Lake is about 115 kilometres east of the Alberta border on the TransCanada Highway.

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Adrian Ewins

Saskatoon newsroom

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