Select Sands Announces “Lease to Purchase” of Rail Facility

Select Sands Corp. (TSX VENTURE:SNS)(OTCQX:SLSDF) is pleased to announce that it has signed a lease to purchase agreement with Newport Rail Loading Facility, LLC (Seller) of Arkansas, whereby Select Sands will acquire the rail loading facility for $2,050,000 (USD) paid over 5 years.

  • The first-year payment of $500,000 has been made to the Seller. The balance will be paid out in equal amounts of $387,500 every year until March, 2021.
  • The loading facility located in Diaz, Arkansas is connected to the Union Pacific Railroad mainline and is 15 miles from the Company’s dry processing plant. The current capacity allows for loading and shipping of one 25 car unit per day. Rail destinations for the company’s Northern white 40/70 and 100 mesh products now include the Texas-Permian and Louisiana-Haynesville basins.

Zigurds Vitols, President & CEO, commented, “The Newport Rail Facility is a right-sized investment at this point of the Company’s development. It will allow dedicated loading, as required, to meet current supply commitments while management considers expansion of the facility and other transportation infrastructure options.