VANCOUVER, British Columbia, Dec. 17, 2015 (GLOBE NEWSWIRE) — North America Frac Sand Inc. (“NAFS” or the “Company”) (OTCQB:NAFS) (www.NAFSINC.ca). On October 19, 2015 and on September 9, 2015 we announced the acquisition of North America Frac Sand (CA) Ltd. and its 30,000 acres of leases that are estimated to contain 6.4 million tonnes of recoverable reserves of frac sand, and potential reserves of at least 66 million tonnes. Although the Share Purchase Agreement refers to reserves, the report received from Green Engineering states that the properties contain an estimated 6.4 tons of mineral resource, 66 million tons of potential resource on the balance of the leased properties.
As per the Share Purchase Agreement, the finalization of acquisition of North America Frac Sand (CA) Ltd. by the Company is subject to:
- the Company receiving from management of North America Frac Sand (CA) Ltd. proof of ownership of the 30,000 acres of leases;
- receipt from management North America Frac Sand (CA) Ltd., certificate from management certifying the 6.4 million tons of resource of frac sand, and potential resource of at least 66 million tons;
- completion of an audit of North America Frac Sand (CA) Ltd.
As of December 17, 2015, the Company has confirmation of North America Frac Sand (CA) Ltd.’s ownership of the 30,000 acres of leases;
Also as of December 17, 2015, the Company has received a certificate from management certifying the 6.4 million tonnes of resource of frac sand, and a potential resource of at least 66 million tonnes.
It is anticipated that the audit will be completed within the next month, but it will be completed on or before February 29, 2015.
Upon the acquisition of North America Frac Sand (CA) Ltd. by the Company, North America Frac Sand (CA) Ltd. will become a subsidiary of the Company.
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.
About North America Frac Sand, Inc.
North America Frac Sand, Inc. (OTCQB:NAFS) is headquartered in Calgary Alberta. With our 30,000 acres of leases and lease options, it is our short term intent to prove out the balance of our significant resource. It is our long term intent to commence shipments as soon as possible.
Please visit the Company’s website at www.nafsinc.ca.
Should you wish to receive Company news via email, please email Anthony Ghitter at [email protected] and specify “North America Frac Sand” in the subject line.
Forward-Looking Information: This news release contains certain forward-looking information. All information, other than information regarding historic 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 is not limited to, the ability of the Company to continue selling frac sand in the future, on a spot basis or otherwise. 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, future prices for frac sand and by-products, future demand for processed frac sand and the ability of the Company to restructure its debts. 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 general volatility of frac sand and by-product prices and demand, geological, technical, drilling and processing problems, future currency and interest rates, an unwillingness of the Company’s lenders to refinance the Company’s debts on terms favourable to the Company or at all and the ability of the Company to continue selling frac sand. Additionally, if the Company is unable to obtain additional financing, the Company may be required to curtail activities and/or liquidate its assets or the Company’s creditors may seek to seize its assets. 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. Although the Company believes that the assumptions inherent in the forward-looking information are reasonable, forward-looking information is not a guarantee of future performance and accordingly undue reliance should not be put on such information due to the inherent uncertainty therein.
CONTACT: CONTACT: North America Frac Sand, Inc. (OTCQB – “NAFS”) Investor Relations: Phone: 587.896.1900 Email: [email protected]