Select Sands Terminates its Option to Purchase Independence Expansion Property and Reduces Short and Long Term Debt by a Total of US$1,380,000
(TheNewswire)
Vancouver, BC, Canada – TheNewswire - November 25, 2019 – Select Sands Corp. (“Select Sands” or the “Company”) (TSXV:SNS) (OTC:SLSDF) announces that its wholly owned subsidiary, Select Sands America Corp., has entered into a negotiated arrangement whereby it has terminated its option to purchase a 223 acre tract of land in Independence County, Arkansas. As part of the termination arrangement, the parties also agreed to release Select Sands America Corp. from its obligations under a promissory note originally securing US $1,580,000 (as well as terminating the mortgage security provided). As a result, Select Sands has reduced its short and long term debt obligations by US$1,380,000.
President & CEO, Zig Vitols commented: “After determining that this 223 acre tract of land is no longer required, we decided to terminate the Independence property option. We negotiated an agreement with the original owners of the property under which the Option Agreement was terminated as well as the underlying promissory note and mortgage. This immediately improves Select Sands’ balance sheet by reducing its debt obligations by US$1,380,000. It is also consistent with our strategy to consolidate assets to improve production costs and minimize expenses. This action does not change any of Select Sands’ operational capability or capacity. Select Sands’ Arkansas plants will continue processing its high quality Northern White Sand.”
As a result of the Independence property option cancellation, the Company will recognize a net loss in the amount of US$239,149, which includes a reversal of US$43,700 of accrued interest.
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, 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 Company's plan to consolidate assets to improve production costs and minimize expenses. 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 policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
For more information about Select Sands Corp., please visit www.selectsandscorp.com or contact:
Zigurds Vitols
President & CEO
Phone: (844) 806-7313
Investor Relations
Arlen Hansen
SNS@kincommunications.com
Phone: (604) 684-6730
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