Claim Post Resources Inc. has sold its Timmins exploration properties for $350,000 in cash and up to a 2 percent net smelter royalty.
The sale of the Timmins exploration properties strengthens Claim Post’s balance sheet, thereby allowing the company to focus all of its capital and resources on the development of its Tier 1 frac sand deposit in Seymourville, Manitoba, Canada. Claim Post believes that its high-quality, near-surface, Tier 1 sand deposit is suitable for fracking in the oil and natural gas industries, and that the company should pursue this opportunity to achieve near term production.
“This strategic transaction allows Claim Post to focus and drive forward with the development of our exciting Tier 1 frac sand project in Manitoba, said Lowell Jackson, executive chairman of Claim Post. “Tier 1 sand demand will remain strong, driven by the combination of limited supply of sands that meets American Petroleum Institute specifications and robust pressure pumping demand in the Montney and Duvernay formations in the Western Canadian Sedimentary Basin. Seymourville, in my view, may be the only such known Tier 1 deposit in Canada at the present time.”
Due to Claim Post’s focus on development of its Tier 1 sand deposit and with corporate activities shifting entirely to energy services, the company intends to make necessary management changes.
Initially, as part of these changes, Charles Gryba, who was the co-founder of Claim Post and was instrumental in assembling the Timmins mineral exploration property portfolio, has resigned his position as president and director effective immediately. He will, however, remain involved with the company as an independent advisor as required by the company.
“Charles has been a driving force in building the company to date, and we wish to sincerely thank him for his efforts and wish him the best for the future,” said Jackson, who will assume the role of Interim president while the management search process is completed.