ENP Newswire -
Release date- 16052014 -
The initial closing on the SPA is the date of this release,
The Company will issue to the Purchaser 5,000,000 common share purchase warrants (each, a 'Warrant') for each
The loan proceeds will provide the Company with funding to build inventory and receivables during the ramp-up stage at the Company's 500,000 ton per annum frac sand drying and screening facility recently constructed in
About Frac Sand
Frac sand is a proppant used in the oil and gas business as a part of the hydraulic fracturing process - a means of increasing flow to the wellhead. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity and roundness, and it is therefore a relatively rare commodity. Vast quantities of frac sand are consumed, and more is needed all the time, as shale gas and oil plays in
The 7P Plant is well located in an area populated with fracking companies, its potential customers, and is within only a few hours' trucking distance of major oil or gas play well sites. Phase 2, which includes the construction of a concentrator in
In Phase 3, the Company intends to construct a larger frac sand plant to process and distribute both imported and domestic sand, which may potentially, but not necessarily, include sand mined as a co-product of development at the Company's Minago project. The Company has already identified a site in
This news release contains certain forward-looking information. All information, other than information regarding historical fact that addresses activities, events or developments that the Company believes, expects or anticipates will or may occur in the future is forward-looking information.
Forward-looking information contained in this news release includes, but may not be limited to, the future issuances of Notes and Warrants to the Purchaser and the timing thereto, the availability of funds and the aggregate amount available to the Company pursuant to the SPA and the timing thereto, the Company's plans and expectations regarding the progress and success of the Company's projects, including the Company's goals and business plan with respect to the frac sand business and the future demand for frac sand.
The forward-looking information contained in this news release reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company.
With respect to the forward-looking information contained in this news release, the Company has made assumptions regarding, among other things, the Company and the Purchaser's ability to satisfy their respective conditions and obligations contained in the SPA, the Company's ability to generate sufficient cash flow from operations and access existing credit facilities and capital markets to meet its future obligations, goals and business plan, future prices for frac sand and by-products, future demand for processed frac sand and the Company's ability to obtain qualified staff and equipment in a timely and cost-efficient manner to meet the Company's demand.
The forward-looking information contained in this news release is subject to a number of risks and uncertainties that may cause actual results or events to differ materially from current expectations, including the inability of the Company or the Purchaser to satisfy their respective conditions and obligations contained in the SPA, the need to obtain required approvals and permits from regulatory authorities, the volatility of frac sand and by-product prices and geological, technical, drilling and processing problems.
Any forward-looking information speaks only as of the date on which it is made and, except as may be required by applicable law, the Company disclaims any obligation to update or modify such forward-looking information, either because of new information, future events or for any other reason.
Most Popular Stories
- Neighbor Warns Chris Brown to Stay Off His Property
- Venezuelan Officials Banned From Traveling in U.S.
- Homeowners More Satisfied With Mortgage Servicers
- Ford Tremor: Easy to Park, Hard to Pay For
- WWE Showing Off Its Muscles
- As Jobs Market Strengthens, Many Don't Feel It
- Adrienne Bailon Disses Ex-Lover Rob Kardashian
- Target Taps Pepsi Exec as New CEO
- What Hamas and Israel Hope to Gain in Gaza
- Hispanic Arts Leaders Unite Across the Border