Agricore Buys SWP Interest in Terminal

REGINA - Feb 3/06 - SNS -- Agricore United has bought the Saskatchewan Wheat Pool's (SWP) half interest in the jointly held Lloydminster Joint Venture (Lloydminster Terminal).

The purchase is expected to close February 22, 2006, subject to normal closing conditions.

In announcing its decision to divest of its joint venture interest, the SWP noted the economics of owning a grain elevator in the Saskatchewan-Alberta border city will change dramatically with the completion of a major ethanol plant in the city.

Agricore United's has agreed to supply Husky Energy's ethanol plant with 350,000 metric tons (MT) of grain annually.

The Lloydminster Terminal, originally built as a joint venture between Saskatchewan Wheat Pool and Alberta Wheat Pool, opened on August 12, 1994. The 15,600 MT facility was constructed at a cost of $5.8 million. Agricore United assumed its 50% interest in the terminal through the merger of United Grain Growers Limited and Agricore Cooperative Ltd. in 2001.