No time line statedAbout Victory Silica Ltd.
Victory Silica is a wholly-owned subsidiary of the Company. In Phase 1, Victory Silica plans to begin sales of premium quality Midwest frac sand from its plant in Seven Persons, Alta. near Medicine Hat (the “7P Plant”) prior to the end of 2013 by shipping partially-processed sand purchased in Wisconsin to the 7P Plant for final processing and distribution. 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 play well sites. Phase 2, which includes the construction of a concentrator in Wisconsin, will reduce costs and assure security of sand supply through the control of a frac sand mine in Wisconsin. In Phase 3, Victory Silica has identified a site in Winnipeg, Manitoba, where it plans to build a larger frac sand plant to process and distribute both imported and domestic sands, including sand mined as a co-product of development of a nickel mine at the Company’s 100%-owned Minago project in Manitoba. With margins expected to be in excess of $25 per ton of frac sand sold, Victory Silica should generate sufficient cash flow in Phases 1 and 2 to provide the financial flexibility to expand its activities by developing a second plant as Phase 3 of its growth plan.