Select Sands Corp. reported that a special meeting of shareholders of CanFrac Sands Ltd. was held on Dec. 16, 2014, and pursuant to an Offer to Purchase and Purchase and Sale Agreement dated Nov. 25, 2014, entered into by the CanFrac and a private “numbered” Alberta company, the numbered company has agreed to purchase the properties, assets and undertakings of the corporation, comprising its frac sand business, as a going concern, including the goodwill associated with the business for a purchase price of $3,500,000.
Select Sands is a Vancouver-based resource growth and development company. The company recently entered into a binding letter of agreement for an option to acquire a 100-percent undivided right, title, and interest in an approximately 520-acre prospective Tier 1 frac sand property located in northeast Arkansas.
Canfrac Sands is in the business of producing 20/40, 40/70, 16/30, and 100 mesh frac sand used in conventional fracturing of oil and natural gas wells in the Western Canadian Sedimentary Basin. The corporation's quarrying operations and processing facilities are located near the city of Lloydminster in Saskatchewan, Canada.
Select Sands has commenced a drill program on its Sandtown property. The property is underlain by the Ordovician St. Peter sandstone formation, the source of “Ottawa White” frac sand selling into major U.S. oil and gas basins. Sandtown sits 3.1 miles from a highway, has an active power line, and has access to an existing rail system about 15 miles away. The company also owns high-grade gold deposits in the La Ronge Gold Belt, northern Saskatchewan, and holds other gold projects located in Ontario and Saskatchewan.