TORONTO, ONTARIO--(Marketwired - Feb. 27, 2014) - Claim Post Resources Inc. (TSX VENTURE:CPS) (the "Company" or "Claim Post") announces that it has filed an Application in Manitoba to enforce the terms of a purchase agreement with Char Crete Ltd. ("Char Crete") (see press release dated July 19, 2013). Under the Char Crete agreement Claim Post purchased nine sand quarry leases from Char Crete for $1.5 million subject to a residual royalty.
The Char Crete leases are part of the Seymourville Frac Sand Project that Claim Post has assembled. In addition to the Char Crete leases, an additional nine quarry leases have been optioned to purchase a 100% interest from Gossan Resources Ltd. subject to a residual royalty. The Seymourville Frac Sand Project is a high grade silica sand project located 200 km north-east of Winnipeg, Manitoba just off of paved Highway 304 on the east shore of Lake Winnipeg. The Seymourville silica sand deposit is being evaluated to be used as a natural sand proppant (frac sand) for the oil and gas industry.
As previously reported, a third party, purporting to be a creditor of Char Crete, has registered an instrument against title to the Char Crete leases. The Company's position is that Char Crete had already sold its interest in the leases to Claim Post, so that no security interest should attach to the leases. An Application has been filed in Manitoba for a determination and a declaration of title and other related relief, including the renewal and transfer of the leases to the Company.
The President of Claim Post Resources, Charles Gryba, stated: "We are concentrating on de-risking all aspects of the Seymourville Frac Sand Project which includes the property position. We had given Char Crete an additional 6 months to remove the third party creditor from title but Char Crete appears to have made no progress. To protect Claim Post shareholders we are now going to take the legal route to ensure the creditor's instrument is removed and the leases are transferred."
The market for frac sand continues to grow; production in the US has grown steadily, from 22 million tons 2011, to 31 million tons in 2012, to 38 million tons in 2013. The market could reach 80 million tons by 2020. Claim Post's Seymourville Frac Sand Project is about 1,000 km closer to the Canadian market than Wisconsin deposits giving it a major transportation advantage.
Charles Gryba P.Eng is the Company Qualified Person for this press release.
Claim Post Resources Inc. is a Canadian based mineral exploration company and a reporting issuer in Ontario, Alberta and British Columbia. The Company is focused on becoming a leading provider of premium white silica sand proppant to oil operations in the Williston Basin (both the Canadian and U.S. sides of the border), and to the natural gas plays in the Montney and Horn River basins along the Alberta - British Columbia border from its Seymourville Frac Sand Project, located 200 km northeast of Winnipeg, Manitoba. Claim Post also has mineral claims in the Timmins area for gold and base metal exploration. There are 96,452,164 common shares of the Company currently issued and outstanding.
Statements in this release that are forward-looking reflect the Company's current views and expectations with respect to its performance, business, and future events. Such statements are subject to various risks and assumptions, some, but not necessarily all, are disclosed elsewhere in the Company's periodic filings with Canadian securities regulators. Such statements and information contained herein represent management's best judgment as of the date hereof based on the information currently available; however actual results and events may vary significantly.
The Company does not assume the obligation to update any forward-looking statement. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.