VANCOUVER, British Columbia, Oct. 19, 2017 (GLOBE NEWSWIRE) -- Select Sands Corp. (“Select Sands” or the “Company”) (TSXV:SN) (OTC:SLSDF) today announced that it has recently entered into an agreement for the option to purchase 223 acres of property in Newark, Arkansas, to serve as a platform to support the Company’s near- and long-term operational and capacity expansion initiatives.
Under the terms of the agreement, Select Sands has the right to purchase the acreage for approximately USD $1.6 million. The Company made a payment of USD $50,000 towards the purchase price upon signing the agreement with an additional USD $75,000 scheduled for payment in October 2018. The option may be exercised at any time on or before October 3, 2020, and, if the option is exercised, the remaining balance of the purchase price will then be due for payment.
Highlights and features of the property include:
- Ideally located relative to the Company’s Sandtown and Bell Farm sand mines;
- Sufficient acreage for a new-build facility designed to process more than three million annual tons of frac and industrial sand;
- Access to rail with the ability to house a 110-railcar loop track for enhanced loading of finished products;
- Elevated above the flood plain allowing for uninterrupted operations; and
- Access to natural gas, three-phase electricity and water.
Zig Vitols, President and Chief Executive Officer, commented, “With the ability to purchase the property at any time, this agreement gives the Company options for considering its use in near-term expansion projects as well as meeting long-term needs. The location of the property will further enhance the logistics capabilities of our current operations as it will reduce interplant transportation by more than 30 miles, thereby resulting in lower operating costs. In addition, the purchase option provides financial flexibility as we continue to evaluate the longer-term opportunity to build a new facility more centrally located to our sand mines that will allow quicker and more efficient processing of our substantial sand resources.”
Separately, Select Sands today announced it will release third quarter 2017 results before market open on Monday, November 13, 2017, and hold a conference call the same day at 2:00 PM Eastern. To access the conference call, callers in North America may dial toll free 1-855-669-9657 and callers outside North America may dial 1-412-542-4135. Please call ten minutes ahead of the scheduled start time to ensure a proper connection and ask to be joined into the Select Sands call.
About Select Sands
Select Sands Corp. is an industrial Silica Product company developing its 100% owned, 520-acre Northern White, Tier-1, silica sands project located in Arkansas, U.S.A. Select Sands’ Arkansas property has a logistical advantage of being significantly closer to oil and gas markets located in Oklahoma, Texas, New Mexico, Colorado and Louisiana than Wisconsin sources. The Tier-1 reference above is a classification of frac sand developed by PropTester, Inc., an independent laboratory specializing in the research and testing of products utilized in hydraulic fracturing & cement operations, following ISO 13503-2:2006/API RP19C:2008 standards.
The Company advises that the production decision on the Sandtown deposit was not based on a feasibility study of mineral reserves, demonstrating economic and technical viability, and, as a result, there may be an increased uncertainty of achieving any level of recovery of minerals or the cost of such recovery, including increased risks associated with developing a commercially mineable deposit. Historically, such projects have a much higher risk of economic and technical failure. There is no guarantee that production will occur as anticipated or that anticipated production costs will be achieved.
This news release includes forward-looking information and statements, which may include, but are not limited to, information and statements regarding or inferring the future business, operations, financial performance, prospects, and other plans, intentions, expectations, estimates, and beliefs of the Company. Information and statements which are not purely historical fact are forward-looking statements. The forward-looking statements in this press release relate to the potential to acquire the property which is the subject of the option agreement and the Company’s plan to build a new processing facility. Forward-looking information and statements involve and are subject to assumptions and known and unknown risks, uncertainties, and other factors which may cause actual events, results, performance, or achievements of the Company to be materially different from future events, results, performance, and achievements expressed or implied by forward-looking information and statements herein. Although the Company believes that any forward-looking information and statements herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that any such forward-looking information and statements will prove to be accurate, and accordingly readers are advised to rely on their own evaluation of such risks and uncertainties and should not place undue reliance upon such forward-looking information and statements. Any forward-looking information and statements herein are made as of the date hereof, and except as required by applicable laws, the Company assumes no obligation and disclaims any intention to update or revise any forward-looking information and statements herein or to update the reasons that actual events or results could or do differ from those projected in any forward-looking information and statements herein, whether as a result of new information, future events or results, or otherwise, except as required by applicable laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Please visit www.selectsandscorp.com, or call:
President & CEO
Ph: (604) 639-4533
Source: Select Sands Corp.