January 15, 2020 adminsns

Select Sands Announces the Start of a Plant Reconfiguration Project and Completion of the Purchase of its Diaz Rail Facility in Diaz, Arkansas

Wednesday, January 15th, 2020

Vancouver, BC – Select Sands Corp. (TSX-V:SNS | OTCQX: SLSDF) (the “Company”) has started a reconstruction project to optimize and consolidate processing assets to improve costs. The Company has also completed the purchase of the Diaz Rail Loading Facility, located in Diaz Arkansas (the “Diaz Rail Facility”), for the remaining payment of US$968,747. Under the lease-to-purchase agreement, the total cost of the Diaz Rail Facility was US$2,050,000 with prior lease payments applied to the total purchase price.

The Plant Reconfiguration Project includes installation of dry-process equipment at the Diaz Rail Facility, thereby increasing process efficiency by reducing inter-plant transportation costs. Dry processing at Diaz will immediately save approximately 16 miles of interplant transportation and over one hour in transload logistics. In addition, the Company has implemented a program to increase its own truck fleet. On a per mile basis, costs savings are estimated to be approximately 25% compared to outside contract trucking. Logistical improvements will also be carried out at the Company’s Sandtown Quarry. No disruption to production or shipping are expected to be experienced during the Plant Reconfiguration Project.

The final payment for the Diaz Rail Facility and the Plant Reconfiguration Project are being funded by a secured bank loan of up to US$4,500,000 being provided to the Company’s wholly owned subsidiary Select Sands America Corp. The loan bears interest at a rate of 5.25% per annum, matures on July 9, 2023 and is secured by a general security agreement and guaranteed by the Company.

Select Sands President and CEO, Zig Vitols remarked, “Shipments starting at the beginning of the year for our long-term supply contract made it an opportune time to leverage our high capacity transload facility located in George West, Texas by optimizing operations in Arkansas. The start of the year has been very encouraging, and we look forward to building volume into the second quarter. At the same time the Company remains focused on securing other potential opportunities across all basins for our high quality Northern White Sand.”

Sales volume for Select Sands’ Northern White Sand during the first quarter of 2020 projected to be between 45,000 and 55,000 tons, and is expected to continue to increase in the second quarter of 2020 when volumes are projected to be between 70,000 to 90,000 tons, as the transload facility in George West, TX ramps up operations.

About Select Sands Corp.

Select Sands Corp. is an industrial silica product company developing its 100% owned, 520-acre Northern White, high quality 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.

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.  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.  Forward looking statements include statements regarding the Company’s projected sales volumes, the timing and anticipated components of the Plant Reconfiguration Project, increasing process efficiency, reducing transport costs through internal trucking and reducing inter-plant transportation distances and costs.   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.

Company Contact

Please visit www.selectsands.com or contact:

Zigurds Vitols
President & CEO
Phone: 844-806-7313

W. Joe O’Rourke
Director of Sales
Phone: 713-689-8000

Arlen Hansen
Investor Relations
Phone: 604-684-6730


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Select Sands America Corp. is a subsidiary of Select Sands Corp.


Select Sands Corp.
Phone: +1-844-806-7313