Victory Nickel (T.NI) chalks up 16% gain on Seven Persons sand delivery

Gaalen Engen Gaalen Engen, Stockhouse.com
0 Comments| February 10, 2014


Victory Nickel (TSX:NI, StockForum), a Toronto-based firm engaged in the acquisition and development of Canadian nickel projects, announced today that the company had accepted delivery of the first nine-railcar shipment of washed, concentrated sand from Winona, MN at its Seven Persons frac sand plant located near Medicine Hat.

 

The shipment is the plant's initial commissioning with two additional railcars on route to Alberta and company officials are confident that the plant will be in continuous-supply mode with measured tonnages of sand delivery increasing as production swings into full effect processing 500,000 tons of frac sand per year.

 

According to the news release, “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. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity and roundness, and it is therefore a relatively rare commodity.”

 

Then noted, “Vast quantities of frac sand are consumed, and more is needed all the time, as shale gas and oil plays in Canada and the US rise to prominence.”

 

Victory Silica CEO, Ken Murdock, commented on the event, “This is what we have all been working so hard towards.”

 

Murdock continued, “The 7P Plant will be commissioned this week. The Company is building inventories of both wet concentrated sand and finished product at the 7P Plant to ensure availability of premium-quality Wisconsin frac sand to meet customer needs.”

 

Then concluded, “The 22,000 tons of dry storage capacity at the 7P plant ensures that we will have premium-quality frac sand available where our customers want it when they need it.”

 

Victory Nickel was in the news recently when the company dropped 31% in three days at the beginning of last week.

 

Shares climbed 16.67% on the news to $0.07 per share.

 

Currently there are 567.0m outstanding shares with a market cap of $39.7 million.


Tags: INDUSTRIAL METALS & MINERALS

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