Victory Nickel Inc.
, Stock Forum
) has finalized its supply contract for washed concentrated sand to be delivered for finish processing at its new Seven Persons frac sand plant (7P Plant) near Medicine Hat, Alberta.
Frac sand is a proppant used in the oil and gas business as a part of the hydraulic fracturing process - a means of increasing flow to the wellhead.
According to the Victory Nickel press release
, the completion of this agreement ensures the availability of the highest quality Jordan formation sand from Wisconsin and also provides Victory Nickel with the opportunity to participate in a joint venture on several properties in Wisconsin and Minnesota guaranteeing it a long-term supply of sand.
"The redesigned 7P Plant will enable Victory Nickel, through its wholly-owned subsidiary Victory Silica Ltd. (VSL), to produce and supply the highest quality import frac sand to the northern markets at all times, including those where imported frac sand becomes unavailable due to high demand in the U.S. Construction of the 7P Plant is nearing completion and frac sand sales are expected to begin shortly," said Ken Murdock, VSL's CEO.
Victory Nickel is a Canadian company with four sulphide nickel deposits containing significant NI 43-101-compliant nickel resources.
On Tuesday, Victory Nickel gained 11% and was trading at $0.05 a share. The company had a market cap of 28.4 million, based on 567 million shares outstanding.