Frac sand expansion plans?Frac sand price is recovering with hopes to be above $60 us .
Frac sand demand is recovering
victory nickel is shipping product
Nickel is above $5
Nickel demand is growing due to the use of nickel in electric cars and batteries.
Please read the attached news release.
Howlong :)
Victory Nickel
Provides Corporate and Operations Update
Toronto, August 16, 2017
–www.victorynickel.ca)
today provided an update on corporate and operating activity.
New Director
The Company is pleased with the addition of Mr. Paul W. Fisher as its newest Director. Mr. Fisher replaces Roland Horst, who did not stand for re-election at the annual meeting of shareholders held on June 22, 2017. Mr. Fisher brings
29 years of oil and gas industry experience to Victory Nickel, including executive positions with Enbridge Inc., Oneok Gas Marketing, Engage Energy and Union Gas. Mr. Fisher is based in Calgary
and will be a significant resource as the Company pushes ahead with plans to expand frac sand sales activity in Alberta and other western locations.
Operations Update
Frac sand activity picked up considerably during the second quarter of
2017 with increased customer requests for quotes suggesting potential for increased sales during the balance of the year. Frac sand sales and pricing have shown improvement in 2017,however demand has been for the coarser fractions.
As a result the Company has drawn down its inventory of coarser frac sand and is in the process of replenishing this inventory at the Seven Persons plant (the “7P Plant”) in Alberta to ensure its ability to serve customers. The Company is
also planning to refurbishthe existing wash plant at the 7P Plant. When the 7P Plant was acquired by the Company in 2012 the facilities included a wash plant and a dry plant. Since the acquisition, the Company has processed only washed sand concentrate purchased from Wisconsin through its dry plant and has never operated its wash plant. Having the wash plant in operation will allow the Company to recover approximately 21,000 tons of high-quality Northern White Wisconsin frac sand that has been spilled as a natural outcome of dry sand processing and which comprises
the highest margin portion of the inventory at the 7P Plant.“
Management continues to believe in the recovery of the frac sand market and as a result has identified and is actively pursuing growth opportunities. The difficulty is finding the right source of financing in this unsettled market,” said Ren Galipeau, CEO.
Corporate Expansion
Over the course of 2016 -2017, management has been evaluating opportunities to
build its presence in the frac and business by acquiring undervalued North American frac sand production assets that offer immediate potential to expand sales and open new market opportunities while at the same time being complementary to
the Company’s existing production activities. Management has identified three potential acquisition targets since November of 2016 and is now in discussions for financing to acquire one of these facilities. This acquisition would add another 1,000,000 tons of production capacity.
Discussions pertaining to the acquisition and financing of such assets is ongoing and the Company will provide details at the appropriate time. Nickel Assets
While frac sand has been the focus of management’s efforts over the past several years, the Company's nickel projects remain valuable assets. Relative to the past several years, the nickel price has been performing well recently