Access to both import and domestic frac sand broadens market reach and potential customer base
TORONTO, CANADA / ACCESSWIRE / 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 Grass Property"). 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.
About Victory Nickel
Victory Nickel Inc. is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources and a significant frac sand resource at its Minago project. Victory Nickel is focused on becoming a mid-tier nickel producer by developing its existing properties, Minago, Mel and Lynn Lake (currently under option to Corazon Mining Ltd.) in Manitoba, and Lac Rocher in northwestern Québec. Through a wholly-owned subsidiary, Victory Silica Ltd., Victory Nickel at its 7P Plant frac sand processing facility in Seven Persons Alberta, has established itself in the frac sand business prior to commencing frac sand production and sales from Minago.
Victory Silica Ltd.
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. The forward-looking information contained in this news release, including information related to the completion and outcome of any debt restructuring activities reflects the current expectations, assumptions and/or beliefs of the Company based on information currently available to the Company. 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. 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.
SOURCE: Victory Nickel Inc.