Select Sands Receives $700,000USD for Sale of Non-Core Asset
(TheNewswire)
October 17, 2019 – TheNewswire - Vancouver, BC, Canada – Select Sands Corp. (“Select Sands” or the “Company”) (TSXV:SNS, (OTC:SLSDF) announces that its wholly owned subsidiary, Select Sands America Corp., has recently sold its 457-acre Bell Farm property for $700,000 USD subject to a 20-year deed restriction to any sand mining on the property. The Company will retain the exclusive rights to lift the deed restriction within the 20 year restricted period. The sale proceeds will be used to paydown approximately $252,000 in company debt. The balance of the net proceeds shall be used to strengthen the Company’s balance sheet, and to fund Company operations.
The Company also announces that it is moving one of its wet process plants to its Sandtown Quarry, Arkansas, with a continued view to consolidating as many processing assets as practical, including moving as many assets as possible closer to the Sandtown Quarry mine in order to minimize inter-plant transportation and improve cost efficiencies.
Bell Farm was not being developed or mined by the Company and was considered a non-core and non-essential asset.
Sandtown is currently producing a Northern White sand (40/70, 30/50 and 100 mesh) and in February of 2016 completed a 43-101 compliant resource calculation with 41.98 million tons of Indicated Mineral Resources in relation to its Sandtown Quarry (See February 10, 2016 News Release). Sandtown is considered of sufficient size to meet the Company’s anticipated near and long-term demand for Northern White sand. As market conditions permit, the Company is targeting to increase capacity to one million tons of Northern White Sand per year to be mined out of the Sandtown Quarry.
The Company continues to engage in potential M&A discussions with third parties. There is no assurance that any deal will be entered into. The Company will provide updates if and when appropriate. In addition to potential M&A opportunities, it is also the time of year when Select Sands is participating in RFQ processes with various existing and potential new customers. Select Sands continues to aggressively pursue new business.
Select Sands Corp. is an industrial Silica Product company developing its 100% owned, 520-acre Northern White, Tier-1, silica sands Sandtown project located in Arkansas, U.S.A.
Select Sands’ Sandtown Arkansas property has a logistical advantage of being significantly closer to oil and gas markets located in Oklahoma, Texas, New Mexico, 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.
Forward-Looking Statements
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 continued escalation of rail car count and second quarter 2017 frac and industrial sand sales volumes. 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.
Company Contact
Please visit www.selectsandscorp.com or call:
Zigurds Vitols
President & CEO
Phone: (844) 806-7313
Investor Relations Contact
Arlen Hansen
Phone: (604) 684-6730
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.
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