Regina, Saskatchewan and Toronto,
Ontario, Canada
May 14, 2008
Viterra and Bio-Extraction
Execute Long-Term Supply Agreement
Viterra Inc. (TSX:VT)
("Viterra") and Bio-Extraction
Inc. (TSX VENTURE:BXI) ("BioExx") are pleased to announce
that they have entered into a long-term Canola Supply Agreement
under which Viterra will supply canola seed to the BioExx
Saskatoon extraction facility.
"We are very pleased to have concluded this Agreement, and
established both a firm and secure source of supply for the
plant, as well as a great long-term business partner in
Viterra," said Chris Carl, BioExx Chief Executive Officer. "This
agreement represents another in a continuing series of
successful and important steps towards start-up of the Saskatoon
plant in January 2009, and moreover to the realization of our
plan to become a leading producer of specialized, high value
products from oilseeds such as canola."
The Agreement is effective immediately, with a term of ten
years, including two automatic renewals of two years each from
the date the BioExx facility reaches full capacity, and provides
for the annual supply of the required 40,000 metric tonnes of
canola feedstock at commercially competitive rates. Viterra will
be the exclusive canola supplier to the facility and will have a
right of first offer to supply future BioExx facilities.
Viterra is Canada's largest handler of grains and oilseeds, with
over 40% market share, about 100 elevators (including one eight
kilometers from the BioExx Saskatoon facility) and approximately
two million metric tonnes of storage capacity. Viterra also
operates 275 agri-products retail outlets across Western Canada.
"Participating in innovative and high value-added seed
processing opportunities is an important component of our
business strategy, and fits well with our background in research
and innovation," said Fran Malecha, Viterra's Chief Operating
Officer. "We are pleased to proceed with this Agreement and look
forward to supplying this facility as part of our long-term
business partnership."
About Viterra
Viterra Inc. is Canada's leading agri-business, with extensive
operations and distribution capabilities across Western Canada,
and with operations in the United States and Japan. The new
company is diversified into sales and services of crop inputs
and equipment, grain handling and marketing, livestock feed,
agri-food processing and financial products. These operations
are complemented by value-added businesses and strategic
alliances, which allow Viterra to leverage its pivotal position
between Prairie farmers and destination customers. The Company's
common shares are listed on the Toronto Stock Exchange under the
symbol VT.
About Bio-Extraction Inc.
The global demand for ever higher food value from agriculture is
growing at an unprecedented pace, driven by population growth
and economic growth. At the same time, food supply constraints
are increasing, due to urban development of arable land,
alternate uses of crops for bio-fuel and other industrial
purposes, and many crops having already maximized yields. The
result is an alarming imbalance between over-demand and
under-supply.
BioExx owns patented technology which allows for much lower
temperatures to be used for the extraction of active ingredients
and oils from biomass. This makes BioExx particularly well
suited to process oilseed crops in a manner that allows for the
production of much higher value additives to the food chain, in
the form of higher yields of high value proteins which tend to
be temperature sensitive. While forming just a small, but very
valuable part of the solution to prominent global agricultural
problems, BioExx has a mandate to rapidly grow the company
through the construction and operation of extraction facilities
around the world - and because of its much lower energy
requirements, to do so in a very environmentally responsible
manner. |
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