Select Sands Announces US $ 8.1 Million Debt Restructuring
AAugust 9, 2021 – The press wire – Houston, Texas, UNITED STATES – Select Sands Corp. (“Select Sands” or the “Company”) (TSXV: SNS) (OTC: SLSDF) announces that its subsidiary, Select Sands America Corp. (the “Subsidiary company“), successfully negotiated and executed a new USD 8.1 million loan agreement (the”Loan agreementâ) With his bank to restructure his existing loans. The proceeds of the loan agreement are used as follows:
The Loan Agreement charges interest of 4.75% per annum, while the Subsidiary’s previous construction loan charges interest of 5.25% per annum. The Subsidiary will make payments on the Loan Agreement of $ 85,199 per month for 59 months from September 4, 2021 and a lump sum payment of $ 4,619,705 on August 4, 2026 which may be refinanced at the interest rate in effect for five more years. The Loan Agreement is secured by the property and buildings of the Branch in Arkansas.
Zig Vitols, President and CEO of Select Sands said: âWe are very happy with this restructuring of the Subsidiary company debt because it frees up working capital and charges a reduced interest rate. In addition, the timing of the execution of the loan agreement is ideal as the US economy continues to recover quickly from the pandemic. The result has been a substantial increase in the demand for crude oil, and we look forward to working closely with current and potential customers to meet their growing needs for fracking and industrial sand. In addition, the increased financial flexibility offered by the loan agreement puts us in a more solid position to potentially seize other opportunities to prudently expand our business for the long-term benefit of our shareholders.”
ABOUT SELECT SANDS CORP.
Select Sands Corp. is an industrial silica products company developing its 100% owned Northern White high quality silica sands project located in Arkansas, United States. The Select Sands property in Arkansas has the logistical advantage of being much closer to the oil and gas markets. located in Oklahoma, Texas, New Mexico and Louisiana as the sources of Wisconsin.
This press release includes forward-looking information and statements, which may include, but are not limited to, information and statements concerning or inferring future activities, operations, financial performance, prospects and other plans, intentions, expectations, estimates and beliefs. the company. Information and statements which are not purely historical facts are forward-looking statements. The forward-looking statements contained in this press release relate to comments which include, but are not limited to, the intended use of the proceeds of the loan agreement and its repayment terms, the U.S. economy will continue to recover quickly. pandemic demand for crude oil, our current and potential customers will have increasing needs for fracking and industrial sand and as the increased financial flexibility offered by the loan agreement puts us in a stronger position to potentially seize other opportunities in order to prudently expand our business for the long-term benefit of our shareholders. Forward-looking information and statements involve and are subject to assumptions and to risks, uncertainties and other known and unknown factors which may cause the actual events, results, performance or achievements of the Company to be materially different from events, results, performance, and achievements expressed or implied by the forward-looking information and statements contained herein. Although the Company believes that the forward-looking information and statements contained herein are reasonable, in light of the use of assumptions and the significant risks and uncertainties inherent in such information and statements, there can be no assurance that such forward-looking information and statements prove to be correct and, therefore, readers are advised to rely on their own assessment of these risks and uncertainties and not to place undue reliance on such forward-looking information and statements. All forward-looking information and statements contained herein are made as of the date hereof, and except as required by applicable law, the Company assumes no obligation and disclaims any intention to update or revise the information and statements. forward-looking statements contained herein or to update the reasons that actual events or results may differ or differ from those projected in the forward-looking information and statements contained herein, whether due to new information, events or future results, or otherwise, except as required by applicable law.
Please visit www.selectsands.com or contact:
President and CEO
W. Joe O’Rourke
Vice President Sales and Marketing
Telephone: (713) 689-8000
Telephone: (832) 917-6030
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