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Hunt Global Resources to Acquire 100 Million Ton Frac Sand Mining Operation
Date : 05/25/2011 @ 9:00AM
Source : Business Wire
Stock : Hunt Global Resources Inc. (HGCO)
Quote : 2.05 0.0 (0.00%) @ 5:00PM
Hunt Global Resources to Acquire 100 Million Ton Frac Sand Mining Operation
Hunt Global Res (OTCBB:HGCO)
Intraday Stock Chart
Today : Wednesday 25 May 2011
Hunt Global Resources Inc. (OTCBB:HGCO.ob) announced today that it has entered into an agreement to acquire the mining rights to over 400 acres of land containing an estimated 100-million tons of Northern White frac-sand. The transaction will be completed based on typical due diligence that includes approvals by regulatory agencies, further testing of the sand deposits and final negotiations of the terms of the lease.
“We’re extremely excited about the opportunity to mine this property,” said George T. Sharp, CEO of Hunt Global Resources. “Northern White frac-sand is considered the premier sand in the industry; it is also becoming extremely scarce, especially in large quantities such as contained on this property.
“Currently the demand for high-quality frac-sand far exceeds the supplies that are available. Moreover, the increased number of oil and gas wells that are projected to be drilled in the ‘shale’ formations during the next five years should continue to widen the gap between supply and demand, causing frac sand prices to continue to escalate,” Mr. Sharp continued.
This site has a huge advantage over traditional discovery sites according to Ed Kuhn, President of Arapahoe Energy Consultants, a geological consultancy contracted by Hunt Global. The current limestone mining operation on the property has been in continuous production for many years and has effectively removed thousands of tons of “over-burden” that has protected the pristine white sand underneath. In addition, this is a working mine with all of the necessary infrastructure, including roads, electric-power gas and rail in place now. What that means is that this site can start producing high grade frac sand faster and for far less money than a development property.
“We believe that we can begin mining frac sand as early as Q3 this year. Currently, quality Northern White frac sand is selling at $90 - $110 per ton, making this a significant transaction,” Mr. Sharp added.
About Hunt Global Resources, Inc.
Hunt Global Resources, Inc. (OTCBB: HGCO) is a natural resource company focusing on specialty sands called “frac” sand, which is an essential component in the production of oil and gas. The Company’s current holdings include the mining rights to 350 acres in Conroe Texas, containing high-grade sand deposits. The site contains approximately 21 million tons, of high value frac-sand. The Company’s holdings include a state-of-the-art 40 million gallon industrial Biofuels manufacturing plant located near the Houston ship channel. The Company plans to utilize the plant’s excess resources and capacity to support a frac-sand resin coating operation which will boost the value of its frac-sand holdings. Additionally, Hunt has recently acquired Carbon Green NA, which is the only patented tire recycling process that recycles 100% of the components of scrap tires with a zero carbon footprint. Hunt has license agreements to distribute the technology in Europe, China and South America. Hunt plans to build up to 10 plants in North America. For more information please visit: www.huntglobalresources.com
