Post by
howlong on Mar 03, 2020 4:39pm
frac sand agreement signed
Toronto, March 2, 2020 – Victory Nickel Inc. (“Victory Nickel” or the “Company”) (CSE:NI, www.victorynickel.ca) today announced that its subsidiary Victory Silica Ltd. (“Victory Silica”) has executed an agreement (the “Agreement”) with Short Grass Ranches Ltd. (the “Owner”) giving the Company the ability to mine frac sand from one of the Owner’s properties (the “Short GrassProperty”). The initial term of the Option is for five years with the ability to extend for additional five-year terms. Prior to signing the Agreement, the Company completed third-party testing of sand resources on the Short Grass Property, located approximately 52 kilometres from the Company’s Seven Persons frac sand plant (the “7P Plant”) near Medicine Hat, Alberta. Since 2014, Victory Nickel has been producing and selling the highest-quality Northern White frac sand imported from Wisconsin at the 7P Plant. The Agreement gives the Company the potential to produce an in-basin domestic sand which has grown in popularity in North America as a means to reduce overall frac cost. Any sand mined from the Short Grass Property would be trucked to the 7P Plant for processing and sale alongside the Northern White products. “The Short Grass Property has a high-quality sand resource, is well-located and gives the Company the opportunity to access new customers in evolving markets. We are pleased to have finalized this relationship with an excellent partner,” said Ken Murdock, CEO of Victory Silica.
Howlong