Select Sands Surges on Proposed Gold Asset Sale

This morning Select Sands Corp. (SNS.V) announced that they have entered into a letter of intent in respect to a proposed purchase by Comstock Metals (CSL.V) of Select Sands’ Preview SW gold project located in the La Ronge district of Saskatchewan and Select Sands’ early-stage Old Cabin property in Ontario.

Comstock President and CEO, David Terry commented on the proposed acquisition:

“We believe that this acquisition will be accretive to Comstock and will diversify its asset base within mining-friendly Canadian jurisdictions. The Preview SW gold project has excellent potential for resource expansion and further discoveries”

The disposition of non-core gold assets was cheered by SNS shareholders today with SNS shares up 20% on heavy volume:

 

SNS.V (Daily)

SNS_accumulation

A breakout above .32 would complete a multi-month bottom for SNS and target an upside move to the mid-.40s.

At today’s closing prices the transaction is valued at C$4.6 million for SNS which is quite accretive given that the transaction is a disposition of non-core gold assets and helps SNS to focus on its core business of advancing its Sandtown silica sands project in Arkansas to commercial production. The pending transaction however, still allows SNS shareholders to participate in future upside from a booming gold market, and a multi-asset gold exploration company.

Select Sands President & CEO Rasool Mohammad commented:  

“Select Sands is now well leveraged to the two gold jurisdictions, where major mining companies have bought gold ounces:  Gold Corp’s acquisition of Kaminak, where Comstock’s QV project is the next discovery after Kaminak’s, and Silver Standards Resources’ acquisition of Claude Resources, where Select Sands’ La Ronge gold property sits optioned to Comstock.”

 

Disclaimer:

The article is for informational purposes only and is neither a solicitation for the purchase of securities nor an offer of securities. Readers of the article are expressly cautioned to seek the advice of a registered investment advisor and other professional advisors, as applicable, regarding the appropriateness of investing in any securities or any investment strategies, including those discussed above. Select Sands Corp. is a high-risk venture stock and not suitable for most investors.. Consult Select Sands Corp.’s SEDAR profile for important risk disclosures.

EnergyandGold has been compensated for this post so some of EnergyandGold.com’s coverage could be biased. EnergyandGold.com, EnergyandGold Publishing LTD, its writers and principals are not registered investment advisors and advice you to do your own due diligence with a licensed investment advisor prior to making any investment decisions.

This article contains certain forward-looking information and forward-looking statements within the meaning of applicable securities legislation (collectively “forward-looking statements”). Certain information contained herein constitutes “forward-looking information” under Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects”, “believes”, “aims to”, “plans to” or “intends to” or variations of such words and phrases or statements that certain actions, events or results “will” occur. Forward-looking statements are based on the opinions and estimates of management as of the date such statements are made and they are subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed by such forward-looking statements or forward-looking information, standard transaction risks; impact of the transaction on the parties; and risks relating to financings; regulatory approvals; foreign country operations and volatile share prices. Although management of the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking statements or forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Actual results may differ materially from those currently anticipated in such statements. The views expressed in this publication and on the EnergyandGold website do not necessarily reflect the views of Energy and Gold Publishing LTD, publisher of EnergyandGold.com. Accordingly, readers should not place undue reliance on forward-looking statements and forward looking information. The Company does not undertake to update any forward-looking statements or forward-looking information that are incorporated by reference herein, except as required by applicable securities laws. Always thoroughly do your own due diligence and talk to a licensed investment adviser prior to making any investment decisions. Junior resource companies can easily lose 100% of their value so read company profiles on www.SEDAR.com for important risk disclosures. It’s your money and your responsibility.