(TheNewswire)
A ugust 9, 2021 - TheNewswire - Houston , Texas ,USA - Select Sands Corp. (“Select Sands” or the“Company”) (TSXV:SNS ) ( OTC:SLSDF) announcesthat its subsidiary, Select Sands America Corp. (the “ Subsidiary ”), has successfullynegotiated and executed a new USD $8.1 million loan agreement (the“ Loan Agreement ”) with itsbank to restructure its existing loans. Proceeds from the LoanAgreement are being used as follows:
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- Approximately USD $4.2 million to fully repay the Subsidiary’sexisting construction loan; and
- Approximately USD $3.9 million to partially repay the Subsidiary’s existing line of credit.
The Loan Agreement charges interest at 4.75% per annum, while theSubsidiary’s prior construction loan charged interest at 5.25% perannum. The Subsidiary will make payments on the Loan Agreement of$85,199 per month for 59 months starting on September 4, 2021 and alump sum payment of $4,619,705 on August 4, 2026 that may berefinanced at the prevailing interest rate for an additional fiveyears. The Loan Agreement is secured by the Subsidiary’s propertyand buildings in Arkansas.
Zig Vitols, President and CEO of Select Sands states, “ We are very pleased with this restructuring of the Subsidiary’s debt, as it frees up workingcapital and charges a reduced interest rate. In addition, the timingof the execution of the Loan Agreement is ideal as the U.S. economycontinues to quickly recover from the pandemic. The result has been amaterial increase in crude oil demand, and we look forward to workingclosely with current and prospective customers to support theirgrowing frac and industrial sand needs. In addition, the increasedfinancial flexibility afforded by the Loan Agreement places us in astronger position to potentially execute on other opportunities toprudently expand our business for the long-term benefit of ourshareholders. ”
ABOUT SELECT SANDS CORP.
Select Sands Corp. is anindustrial silica product company developing its 100% owned, 520-acreNorthern White, high quality silica sands project located in Arkansas,U.S.A. Select Sands’ Arkansas property has a logistical advantageof being significantly closer to oil and gas markets located inOklahoma, 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 statementsregarding or inferring the future business, operations, financialperformance, prospects, and other plans, intentions, expectations,estimates, and beliefs of the Company. Information and statementswhich are not purely historical fact are forward-looking statements.The forward-looking statements in this press release relate tocomments that include, but are not limited to, the intended use ofproceeds of the Loan Agreement and its repayment terms, the U.S.economy will continue to quickly recover from the pandemic, the demandfor crude oil, our current and prospective customers will have growingfrac and industrial sand needs and that the increased financialflexibility afforded by the Loan Agreement places us in a strongerposition to potentially execute on other opportunities to prudentlyexpand our business for the long-term benefit of our shareholders.Forward-looking information and statements involve and are subject toassumptions and known and unknown risks, uncertainties, and otherfactors which may cause actual events, results, performance, orachievements of the Company to be materially different from futureevents, results, performance, and achievements expressed or implied byforward-looking information and statements herein. Although theCompany believes that any forward-looking information and statementsherein are reasonable, in light of the use of assumptions and thesignificant risks and uncertainties inherent in such information andstatements, there can be no assurance that any such forward-lookinginformation and statements will prove to be accurate, and accordinglyreaders are advised to rely on their own evaluation of such risks anduncertainties and should not place undue reliance upon suchforward-looking information and statements. Any forward-lookinginformation and statements herein are made as of the date hereof, andexcept as required by applicable laws, the Company assumes noobligation and disclaims any intention to update or revise anyforward-looking information and statements herein or to update thereasons that actual events or results could or do differ from thoseprojected in any forward-looking information and statements herein,whether as a result of new information, future events or results, orotherwise, except as required by applicable laws.
COMPANY CONTACT
Please visit www.selectsands.com orcontact:
Zigurds Vitols President & CEO Phone 844-806-7313 | W. Joe O’Rourke Vice President Sales & Marketing Phone: (713) 689-8000 Joe.orourke@selectsands.com | Wesley Harris Investor Inquiries Phone: (832) 917-6030 wes@selectsands.com |
Neither TSX Venture Exchange nor its Regulation Services Provider(as that term is defined in the policies of the TSX Venture Exchange)accepts responsibility for the adequacy or accuracy of thisrelease.
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