November 25, 2019
Vancouver, BC – Select Sands Corp. (TSX-V:SNS | OTCQX: SLSDF) (the “Company”) 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.
About Select Sands Corp.
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 and cement operations, following ISO 13503-2:2006/API RP19C:2008 standards.
For more information about Select Sands Corp., please visit www.selectsandscorp.com or contact:
Please visit www.selectsandscorp.com or call:
President & CEO
Phone: (844) 806-7313
Investor Relations Contact
Phone: (604) 684-6730
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