Select Sands Corp. said April 4 that it signed a lease-to-purchase agreement with Newport Rail Loading Facility LLC to acquire the latter for US$2.1 million, payable over five years.
The company completed the first-year US$500,000 payment to the seller, with the balance to be paid in equal tranches of US$387,500 every year until March 2021.
The loading facility is in Arkansas, 15 miles from Select Sands' dry processing plant, and has a current capacity enabling loading and shipping of one 25-car unit per day. The infrastructure is connected to the Union Pacific Railroad mainline.
"The Newport Rail Facility is a right-sized investment at this point of the company's development," Select Sands President and CEO Zigurds Vitols commented. "It will allow dedicated loading, as required, to meet current supply commitments while management considers expansion of the facility and other transportation infrastructure options."