Select Sands Corp announced that it has recently entered into an agreement for the option to purchase 223 acres of property in Newark, Ark., to serve as a platform to support the company’s near- and long-term operational and capacity expansion initiatives.
Under the terms of the agreement, Select Sands has the right to purchase the acreage for approximately $1.6 million. The company made a payment of $50,000 towards the purchase price upon signing the agreement with an additional $75,000 scheduled for payment in October 2018. The option may be exercised at any time on or before Oct. 3, 2020, and, if the option is exercised, the remaining balance of the purchase price will then be due for payment.
Highlights and features of the property include:
• Ideally located relative to the company’s Sandtown and Bell Farm sand mines.
• Sufficient acreage for a new-build facility designed to process more than three million annual tons of frac and industrial sand.
• Access to rail with the ability to house a 110-railcar loop track for enhanced loading of finished products.
• Elevated above the flood plain allowing for uninterrupted operations.
• Access to natural gas, three-phase electricity and water.
Zig Vitols, president and chief executive officer, commented, “With the ability to purchase the property at any time, this agreement gives the company options for considering its use in near-term expansion projects as well as meeting long-term needs. The location of the property will further enhance the logistics capabilities of our current operations as it will reduce interplant transportation by more than 30 miles, thereby resulting in lower operating costs. In addition, the purchase option provides financial flexibility as we continue to evaluate the longer-term opportunity to build a new facility more centrally located to our sand mines that will allow quicker and more efficient processing of our substantial sand resources.”