CALGARY, Alberta, Feb. 04, 2016 (GLOBE NEWSWIRE) -- North America Frac Sand Inc. (“NAFS” or the “Company”) (OTCQB:NAFS) (www.NAFSINC.ca) is pleased to announce the appointment of Green Engineering Ltd. (“GEL” or “Green Engineering”) to complete a NI 43-101 report on North America Frac Sand (CA) Ltd.’s 30,000 acres of mineral leases located 30 kilometers west of Saskatoon, Saskatchewan (the “Eagle Creek property”). The Company earlier announced a Share Purchase Agreement with Canadian Sandtech Inc (“CSI”) and is expected to conclude the acquisition of North America Frac Sand (CA) Ltd. by February 29, 2016.
In order to facilitate the acquisition, the previous owner of the Eagle Creek, CSI transferred ownership of the Eagle Creek property to North America Frac Sand (CA) Ltd., a wholly owned subsidiary of CSI, in late 2015. There has been significant exploration activity on 1,680 acres of the Eagle Creek property. Since 2008, CSI has drilled 173 holes on the Eagle Creek property. 149 of the drill holes were 300-foot spacing. 7 drill holes and 17 backhoe holes were 600-foot spacing. The average sand thickness per hole was 10.5 feet and the size of the tested area was approximately 12.9 million square feet. With respect to frac sand, there are approximately 75 lbs. of frac sand per cubic foot.
It is the intent of GEL in the NI 43-101 Resource Report to categorized estimated tonnages of mineral sand.
About Green Engineering Ltd.: Green Engineering Ltd. is an independent engineering company owned by Donald Green, PEng. GEL is specialized in providing independent assessments of properties under the rules of NI 43-101.
About Frac Sand: Frac Sand is a proppant used in the oil and gas business as a part of the hydraulic fracturing process – a means of increasing flow to the wellhead. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity, roundness and conductivity and it is therefore a relatively rare commodity.
CONTACT: North America Frac Sand, Inc. (OTCQB:NAFS)
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Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information. Forward-looking information contained in this news release includes, but is not limited to, the ability of the Company to continue selling frac sand in the future, on a spot basis or otherwise. The forward-looking information contained in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. With respect to the forward-looking information contained in this news release, the Company has made assumptions regarding, among other things, future prices for frac sand and by-products, future demand for processed frac sand and the ability of the Company to restructure its debts. The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including the general volatility of frac sand and by-product prices and demand, geological, technical, drilling and processing problems, future currency and interest rates, an unwillingness of the Company’s lenders to refinance the Company’s debts on terms favourable to the Company or at all and the ability of the Company to continue selling frac sand. Additionally, if the Company is unable to obtain additional financing, the Company may be required to curtail activities and/or liquidate its assets or the Company’s creditors may seek to seize its assets. Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
Source:North America Frac Sand Inc.