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Double Crown Resources Signs LOI for Long Term Lease of Fracturing Sand Source [Manufacturing Close - Up](Manufacturing Close - Up Via Acquire Media NewsEdge) Double Crown Resources said it has signed a Letter of Intent (LOI) with a premium grade fracturing sand source in Wisconsin to create a long term property lease, production facility development plan and product marketing agreement. According to a company release, the new arrangement will provide Double Crown the rights to a large capacity of premium grade silica fracturing sand, a key mineral commodity in great demand primarily for on-shore oilfield drilling operations employing hydraulic fracturing techniques. The mine's sand product is classified as Northern White which is some of the highest grade fracturing sand available anywhere in the world. The mining property has options for both rail and water barge shipments and is ideally located to service the strongly growing North American shale oilfield operations, especially those in the midwest Bakken region. The Company said that the Wisconsin fracturing sand source has two sand mining sites, referred to as "Plant 1" and "Plant 2" on its properties. In accordance with terms of the signed LOI, Double Crown will arrange funding for the necessary development of both sites. This development will include construction of wash and dry sand facilities at Plant 1 as well as design and building of a wet sand production facility at Plant 2. Double Crown will purchase, market and resell all dry finished (20/40, 30/50 and 40/70) sand product from Plant 1 and hydrosized wet (20/70) sand mined from both Plant 1 & Plant 2. This will not only complete the product line but will provide a source for the feedstock to supply the New Orleans fracturing sand drying facility. Personnel from the sand company's staff will oversee mine site development and facilities construction and also provide on-site management services. All product produced by Plant 2 will be shipped directly to Double Crown's processing plant & bulk terminal at New Orleans after this facility completes its planned renovations and upgrades. Regarding the LOI and plans for the Wisconsin fracturing sand mining operation, Double Crown's President Allen E. Lopez stated, "We had already secured excellent sources of barite, guar gum and other vitally important oilfield drilling commodities but premium grade fracturing sand was the missing ingredient which we needed to complete our product line. The Northern White sand available from this mining property will allow Double Crown Resources to serve the full needs of its customers with nothing but the best quality materials. Once the Wisconsin facilities are producing fracturing sand product for shipment and Double Crown brings its New Orleans plant and multi-advantage, patent-pending aggregate material transport system into play, we will be able to provide a truly higher level of oilfield service to the petroleum industry that does not yet exist today." Double Crown Resources is a natural resource exploration and development company. More Information: www.doublecrownresources.com ((Comments on this story may be sent to [email protected])) (c) 2014 ProQuest Information and Learning Company; All Rights Reserved. |