SOURCE: Canexus Corporation

Canexus Corporation

October 23, 2014 09:33 ET

Canexus Provides Contract Update for Its NATO Unit Train Facility

CALGARY, AB--(Marketwired - October 23, 2014) - Canexus Corporation (TSX: CUS) (the "Corporation" or "Canexus") announces that the Transportation and Terminalling Services Agreement ("Agreement") between the midstream logistics and marketing company and the Corporation announced on December 5, 2013, has been terminated. Considering this termination, the North American Terminal Operations ("NATO") unit train facility has contracted volumes for up to four unit trains per week, representing approximately 40% of the planned capacity of 10.5 unit trains per week. Both customers with contracted volumes have nominated to deliver bitumen blend to NATO during the fourth quarter.

"We are very disappointed that the delay in the tie-in of the Cold Lake pipeline system to the unit train facility triggered the termination right under this Agreement that was exercised," stated Doug Wonnacott, Canexus' President and CEO. "However, the customer who canceled the Agreement has indicated they remain interested in discussing a mutually-acceptable relationship with Canexus. NATO remains an attractive asset which is evident from the significant interest we have had in the facility since placing it up for sale," added Mr. Wonnacott.

Forward-Looking Statements
This news release contains forward-looking statements and information relating to expected future events relating to Canexus and its subsidiaries, including with respect to the planned capacity of NATO, the future relationship between Canexus and the midstream logistics and marketing company and the attractiveness of NATO to third parties. The use of the words "expects," "anticipates," "continue," "estimates," "projects," "should," "believe," "plans," "intends," "may," "will" or similar expressions are intended to identify forward-looking statements. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results to differ materially from those anticipated in such forward-looking statements for a variety of reasons, including market and general economic conditions, future costs, treatment under governmental regulatory, tax and environmental regimes and the other risks and uncertainties detailed under "Risk Factors" in the Corporation's Annual Information Form filed on the Corporation's SEDAR profile at www.sedar.com. Management believes the expectations reflected in these forward-looking statements are currently reasonable but no assurance can be given that these expectations will prove to be correct and such forward-looking statements should not be unduly relied upon. Due to the potential impact of these factors, Canexus disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, unless required by applicable law.

About Canexus
Canexus produces sodium chlorate and chlor-alkali products largely for the pulp and paper and water treatment industries. Our four plants in Canada and two at one site in Brazil are reliable, low-cost, strategically located facilities that capitalize on competitive electricity costs and transportation infrastructure to minimize production and delivery costs. Canexus also provides fee-for-service hydrocarbon transloading services to the oil and gas industry from its terminal at Bruderheim, Alberta. Canexus targets opportunities to maximize shareholder returns and delivers high-quality products to its customers and is committed to Responsible Care® through safe operating practices. Canexus' common shares (CUS) and debentures (Series III - CUS.DB.A; Series IV - CUS.DB.B; Series V - CUS.DB.C; Series VI - CUS.DB.D) trade on the Toronto Stock Exchange. More information about Canexus is available at www.canexus.ca.

Contact Information

  • Further Information:

    Richard McLellan, CA
    Senior VP, Finance and CFO
    Canexus Corporation
    (403) 571-7300

    Lavonne Zdunich, CA
    Investor Relations
    Canexus Corporation
    (403) 571-7356