Corporate Presentation

TSX-V:SNS
OTC:CLICF
CORPORATE
PRESENTATION
March 2016
TIER 1 GRADE
COMMERCIAL SILICA
The Economic Irreplaceable Raw Material
DISCLAIMER
TSX-V:SNS
OTC:CLICF
This corporate presentation (the “Presentation”) has been prepared by management of Select Sands Corp. (the
regarding the resulting company's future performance. All statements, other than statements of historical fact,
“Corporation”) based on public information and the Corporation’s confidential information. This Presentation is for
may be forward looking statements. Forward looking statements are often, but not always, identified by the use of
information purposes only and is being made available on a confidential basis solely to enable the prospective
words such as “seek”, “anticipate”, “plan”, “continue”, “estimate”, “expect”, “may”, “will”, “project”, “predict”,
investor to evaluate the securities of the Corporation (the “Securities”). This Presentation does not constitute an
“propose”, “potential”, “targeting”, “intend”, “could”, “might”, “should”, “believe” and similar expressions. Although
offer to sell to any person, or a general offer to the public of, or the general solicitation from the public of offers to
the Corporation believes in light of the experience of its officers and directors, current conditions and expected
subscribe or purchase, any of the Securities. Any unauthorized use of this Presentation is strictly prohibited.
future developments and other factors that have been considered appropriate that the expectations reflected in
Distribution or copying of this Presentation, in whole or in part in any medium, to any person other than the
this forward-looking information are reasonable, undue reliance should not be placed on them because the
prospective investor is prohibited without the prior written consent of the Corporation. The information contained
Corporation can give no assurance that they will prove to be correct, and actual results, performance or
in these slides, the Presentation made to you verbally and any other information provided to you (in writing or
achievement could differ materially from those expressed in, or implied by, these forward-looking statements.
otherwise) in connection with the Corporation and its business (the “Presentation Materials”) is subject to
Forward-looking statements contained in this Presentation include, but are not limited to, statements with respect
updating, completion, revision, verification and amendment without notice which may result in material changes.
to the Corporation's business strategy, the market in which the Corporation operates; the ability of the Corporation
to successfully integrate businesses; the timing and nature of equity offerings to be completed by the Corporation;
The Presentation Materials are not intended to provide financial, tax, legal or accounting advice and do not
the Corporation's potential revenue; the ability of the Corporation to successfully complete mergers and
purport to contain all the information that a prospective investor may require. Each prospective investor should
acquisitions; the ability of the Corporation to realize on the potential of target companies; and other expectations,
perform and rely on its own investigation and analysis of the Corporation and the terms of any offering of the
beliefs, plans, objectives, assumptions, intentions or statements about future events or performance. Forward-
Securities, including the merits and risks involved, and are advised to seek their own professional advice on the
looking statements contained in this Presentation reflect the current beliefs and assumptions of the Corporation's
legal, financial and taxation consequences of making an investment in the Corporation.
management based on information in its possession as of the date of this Presentation.
No securities commission or similar regulatory authority in Canada has reviewed or in any way passed upon this
Readers are cautioned that the foregoing list is not exhaustive. The forward-looking statements contained herein
presentation, and any representation to the contrary is an offence. Neither the Corporation nor the agent of the
are expressly qualified in their entirety by this cautionary statement. The forward-looking statements included in
Corporation makes any representation or warranty, express or implied, and assumes no responsibility for the
this presentation are made as of the date of this presentation and the Corporation does not undertake and is not
accuracy or completeness of the information contained in this Presentation or any other oral or written
obligated to publicly update such forward-looking statements to reflect new information, subsequent events or
communication transmitted to prospective investors, and nothing contained in this summary is, or shall be relied
otherwise unless so required by applicable securities laws.
upon as, a promise or representation by the Corporation or the agent of the Corporation as to the past or future
performance of the Corporation.
The Corporation does not undertake to provide any additional further information or to enter into negotiations
regarding the investment opportunity to which these Presentation Materials relate. The Corporation retains the
right, at any time, to terminate any discussions or negotiations with prospective investors. In the event of such
termination the Corporation will not be under any obligation to disclose the reasons for such termination nor will
they have any liability to any recipient hereof for any costs whatsoever incurred in the consideration of the
information contained in these Presentation Materials.
www.selectsandscorp.com
2
ABOUT
TSX-V:SNS
OTC:CLICF
Developing a Tier 1 Grade commercial silica
deposit in Arkansas with very low capex and
strong gross margins.
+ Quality Tier 1 Grade Advantage
www.selectsandscorp.com
+ Logistics Advantage
+ Year Round Mining Advantage
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VALUE PROPOSITION
TSX-V:SNS
OTC:CLICF
+ As per Feb 2016 Tetra Tech Report Sandtown Project has 41.98MM tons (38.08MM tonnes) of drill indicated high purity silica resources.
+ As per June 2015 Tetra Tech PEA report Pre-tax Net Present Value (NPV) at 8% of US$160 million based on 40% of drilled property.
+ Premium silica product attributes which are in constant demand in both industrial and energy markets
+ Superior location of SNS sand quarry in Arkansas, USA to service industrial product suppliers and oil/gas fracking markets based in Texas and surrounding
states providing significant and sustainable logistic advantages and cost savings to those end buyers.
+ 429,100 oz. gold in Saskatchewan, Canada
+ No debt
+ $3MM Canadian cash
+ SNS’s Market Cap - CAD $14MM (as of February, 2016).
SIGNIFICANT OPPORTUNITIES
+ Purchasing nearby existing production facilities materially reducing capex and shortening time to production.
+ Ability to generate profitable business very rapidly with low capex.
+ Possible potential acquisition and roll up of other sand operations and related businesses using the tax advantageous structure.
+ Monetization of 429,100 oz. gold interest in Saskatchewan, Canada
www.selectsandscorp.com
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SANDTOWN PROJECT – Core Asset
TSX-V:SNS
OTC:CLICF
+ Contains high-purity Silica (+99% SiO2), with high roundness and high sphericity
+ Desirable finer 40/70 & 100 mesh sand of +99% pure SiO2 (quartz); exceeds or meets
various industrial and API Tier-1 Specifications
+ Highest quality rating of Premium “Tier 1”, also known as “Ottawa White” or “Northern
White”, frac sand with a crush resistance of 7K-10K psi
+ Target annual 865,000 tons commercial silica products, using “toll processing” model;
operational year-round; Permit already issued. Potential to increase to 2,000,000 tons
per annum in future.
+ Target markets are Industrial & Specialty Products and Energy (oil and gas)
+ The Industrial & Specialty Products segment consists of over 250 products and
materials used in a variety of industries including, container glass, fiberglass,
specialty glass, flat glass, building products, fillers and extenders, foundry
products, chemicals, recreation products, and filtration products. New end markets
include solar panels, specialty coatings, wind turbines, polymer additives, and
geothermal energy systems
+ Sandtown is 650 rail-miles closer to the major Texas and Louisiana industrial and
energy markets than Wisconsin silica mines, offering approximately $15/ton savings in
transportation costs to customers
www.selectsandscorp.com
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SANDTOWN PROJECT OVERVIEW
TSX-V:SNS
OTC:CLICF
HIGH PURITY COMMERCIAL SILICA
+ Fine Mesh - 40/70 (32%) & 100 mesh (58%)
+ 41.98 million mineable tons indicated silica resource
INFRASTRUCTURE
+ Highway: 3.1 miles
+ Rail spur: 15 miles
+ Power, Water & Natural Gas available
PERMITTING
+ Quarry Mining Permit issued
EXCELLENT JURSIDICTION
+ Arkansas, USA
PEA ECONOMICS
+ PEA Completed on 40% of property (22 million mineable tons)
+ 45% pre-tax IRR
+ $160Million NPV
www.selectsandscorp.com
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INDUSTRIAL & SPECIALTY PRODUCTS
Industry pundits report that YOY future
TSX-V:SNS
OTC:CLICF
SOLAR / GLASS
SEMI-CONDUCTORS
BUILDING PRODUCTS
AUTOMOBILES
COSMETICS
SHAMPOO
CAULKING
CELL PHONE
“GORRILLA® GLASS”
growth is about 8% for the Industrial &
Specialty Products sales.
The recent economic activity in U.S. has
significantly increased demand for high
purity / finer mesh silica in the foundry,
building products, and glassmaking end
markets.
Constructions
spending
in
the
U.S.
increased in January 2016 vs January
2015 by 10.4 % to $1.14 trillion.
www.selectsandscorp.com
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INDUSTRIAL & SPECIALTY PRODUCTS
TSX-V:SNS
OTC:CLICF
The Industrial & Products segment
includes US housing materials used
in construction of new homes and
renovations. Construction spending
increased 1.5 % in January 2016, to
$1.14 trillion, the highest level since
October 2007
Current target markets for silica
include;
•Foundry
•Roofing
•Grouts and mortars for tiles, stones
and bricks
•Currently testing our silica products
to be used in protective coatings
www.selectsandscorp.com
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SILICA PRODUCTS
TSX-V:SNS
OTC:CLICF
WHOLE GRAIN SILICA (80% of the Market)
+ Whole grain silica that meets API RP 19C is used as frac sand in connection with oil and natural gas recovery.
+ Whole grain silica products in a range of size distributions, grain shapes, and chemical purity is used in the manufacturing of glass products,
including a low-iron whole grain product sold to manufacturers of architectural and solar glass applications.
+ In addition, whole grain round silica is used in the foundry industry, and whole grain commercial silica is used in the building products industry.
+ Sales of whole grain commercial silica products account for approximately 80% of the projected sales.
GROUND SILICA PRODUCTS (20% of the Market)
+ Ground silica in sizes ranging from 40 to 250 microns is used in plastics, rubber, polishes, cleansers, paints, glazes, textile, fiberglass, and
precision castings.
+ Also ground silica in sizes ranging from 5 to 40 microns is used in premium paints, specialty coatings, sealants, silicone rubber, and epoxies.
Sales of ground silica products account for approximately 20% of total projected sales.
www.selectsandscorp.com
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LOCATION ADVANTAGE – US & Canada Shale Energy Basins
TSX-V:SNS
OTC:CLICF
+ Superior location of
resource to service
oil/gas fracking markets
and industrial product
suppliers providing
significant and
sustainable logistics
advantages and cost
savings to end buyer,
offering approximately
$15/ton savings in
transportation costs to
customers.
www.selectsandscorp.com
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PAC WEST NORTH AMERICAN FRAC SAND OUTLOOK
TSX-V:SNS
OTC:CLICF
+ Recent optimization of well completion design (to include more fine mesh sand) has increased demand for finer mesh grades
+ Average sand mass per well for the top 5 operators is significantly higher than other operators in the Eagle Ford (82%), Permian
(86%), and Marcellus (56%)
+ Recent outliers exceed 20 million pounds (10,000 tons) per well, which is 4x the average well size today.
+ Sources report demand increases for fine grades frac sand (particularly 100 mesh) due to unexpectedly high demand stemming from
changes to frac design.
+ Logistics can account for 60% or more of delivered cost; therefore, transportation distance is key.
+ Market price for finer mesh silica is generally related to the price of oil. As oil price recovers over $40-$50 U.S. per barrel, price for
SNS silica sand will be profitable. At current oil prices (low $30’s or over), selling price of our silica sand into oil and gas market not
very profitable.
+ Market prices into industrial market still profitable in today’s market.
www.selectsandscorp.com
11
PREVIEW SW GOLD DEPOSIT – SASKATCHEWAN CANADA
TSX-V:SNS
OTC:CLICF
VIEW OF PIT FROM SOUTH
Effective Date : August 31, 2013; Assumptions used in the pit optimization include US$1,300/oz Au, 90% Au recovery, $2.50/tonne
mining cost, $2.00/tonne waste mining cost, $15.50/tonne process and G&A cost. No allowances have been made for mining losses and
dilution. A pit slope angle of 45° was used. Mineral Resources that are not Mineral Reserves do not have demonstrated economic
viability. The claims are within the Mineral Disposition Zone of the Lac La Ronge Provincial Park. Mineral exploration and development is
permitted within this zone.
www.selectsandscorp.com
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TSX-V:SNS
OTC:CLICF
Company
www.selectsandscorp.com
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BOARD OF DIRECTORS & SENIOR MANAGEMENT
ARNOLD TENNEY
Chairman / Director
+ Former Chairman and Director of Tribute Pharmaceuticals (TSXV: TRX; OTCQX: TBUFF), April 29, 2004 to
February 2016
+ Former Financial consultant at Devine Entertainment Corporation, CEO of ARC International, and Chairman of the
Board of Cabletel Communications
+ Former Director of Ballantyne of Omaha, Inc.; also a director of Phillip Services Inc., a Canadian metal recycling
company serving as a representative of Mr. Carl Icahn
RASOOL MOHAMMAD
President & CEO, Director
+ B.Sc. (Mining Engineering) NWFP, UET, Peshawar, Pakistan
+ 20 years experience in the mining and mineral exploration industry
+ Has worked for major and junior resource companies in Canada, US, Mexico, and South America
+ Former President & CEO of Comstock Metals, Director in Comstock Metals.
ZIGURDS R. VITOLS
Chief Operating Officer / Director
+ 16 years experience with Martin Marietta Materials as President of Mid-South Division, VP General Manager
Arkansas District, and VP General Manager Houston District
+ Northeast General Manager, Canadian Sales & Marketing Manager, Western Region Manager, Branch Manager, &
Technical Sales Rep. for W.R. Grace & Co.
+ MBA, International Business, Heriot Watt University, Edinburgh, Scotland
+ Civil Engineering Technology, Mohawk College, Hamilton, Canada
www.selectsandscorp.com
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BOARD OF DIRECTORS & SENIOR MANAGEMENT
TSX-V:SNS
OTC:CLICF
STEVEN GOLDMAN
+ Partner in Toronto Law Firm Goldman Hine LLP
Director
General Counsel
+ Successfully led the restructuring and turnaround of the Speedy Auto Service and Minute Muffler franchise systems
+ BA (Carleton University, President’s Medal), JD (Queen’s University)
as their President and CEO from December 2007 until December 2009
+ Recent Member of the Executive of the Ontario Bar Association, Franchise Section, the Law Society of Upper
Canada, the American Bar Association Forum on Franchising, and the Institute of Corporate Directors
+ Former Director of Tribute Pharmaceuticals Inc. (trading on the TSX.V as symbol TRX), as well as a member of its
audit and compensation committees until February 2016. Former director of Alegro Health Corp. (now known as
Centric Health Corp., trading on the TSX as symbol CHH)
+ Director in Comstock Metals (CSL.V).
DOUGLAS TURNBULL
Director
DARREN URQUHART
Chief Financial Officer (CFO)
CARL BUCHANAN
Industrial Sales Manager
+ Consulting geologist with over 30 years experience in diamond, precious and base metal exploration.
+ Bachelor of Science degree with Honours in Geology and is a Qualified Professional Geoscientist
+ Director in Comstock Metals Ltd., Astur Gold Corporation, and Grizzly Discoveries Inc.
+ Mr. Urquhart is a Chartered Accountant and B.A.Sc. (Electrical Engineering) with more than 15 years of experience
working in both public practice and industry
+ Previously, Mr. Buchanan worked as a Regional Manager for US Silica (SLCA: NYSE) for over 16 years, where he
increased Building Products sales revenues by 40%, establishing US Silica’s Building Products market as the
quickest emerging sector in the company.
+ Directly responsible for the sales and management of a seven-state territory and was head of National Account
sales for major building product and glass customers including: Owens Corning Roofing & Insulation, St. Gobain,
Certainteed, Gardner Asphalt, Mapei, Sto Corporation, Anchor Glass, and Atlas Corporation.
www.selectsandscorp.com
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SHARE STRUCTURE
TSX-V:SNS
OTC:CLICF
Shares Issued & Outstanding
Warrants
Options
Fully Diluted
TSX-V:SNS
OTC:CLICF
As of Mar. 2016
54,599,254
8,588,416
4,482,833
67,670,503
Average Daily Volume
41,580
Market Cap
$14MM
Cash
$3.7MM
Debt
0
www.selectsandscorp.com
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SELECT SANDS CORPORATION
310 – 850 West Hasting Street
Vancouver, British Columbia, Canada V6C 1E1
+1 604-639-4533
+1 604-669-2744
[email protected]
www.selectsandscorp.com
.
I N V E S T O R R E L AT I O N S
Kin Communications Inc.
100 – 736 Granville Street
Vancouver, British Columbia, Canada V6Z 1G3
+1 604-684-6730
+1 866-684-6730 (toll free)
[email protected]
www.kincommunications.com