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Urban Select Announces LOI With North America Frac Sand, Inc.


Urban Select Announces LOI With North America Frac Sand, Inc.

Vancouver, British Columbia (FSCwire) – Urban Select Capital Corporation (TSX-V: CH) (“Urban Select” or the “Company”) announces its next proposed investment.

Urban Select has entered into a Letter of Intent (“LOI”) with North America Frac Sand, Inc. (“NAFS”) to acquire 100% of the rights to approximately 29,900 leased acres located in the province of Saskatchewan, Canada, more commonly known as the Eagle Creek Property (“Eagle Creek” or the “Property”). Under the terms of the LOI, Urban will have an exclusive period of up to 60 days of signing the LOI to conduct its due diligence on Eagle Creek. Upon satisfactory due diligence, a Definitive Agreement will be executed pursuant to which Urban Select can acquire the Property in consideration of issuing 20 million common shares of Urban Select to NAFS. It is Urban Select’s intention to assign its rights to the Property to a newly incorporated Saskatchewan subsidiary.

The transaction is subject to a number of conditions precedent first being met, including (i) TSX Venture Exchange approval, (ii) NAFS obtaining the approval of its shareholders, if required, and (iii) Urban Select completing a private placement to raise at least $500,000. Upon closing, NAFS Board of Directors shall distribute the Urban Select shares received to enhance its shareholder value accordingly.

The Property is located approximately 50km by road northwest of Saskatoon. The Property has been explored for sand that can be used as a hydraulic fracturing proppant.

The Property is the subject of a technical report dated March 13, 2018 as prepared by Norwest Corporation. A copy of such report can be found under NAFS’s SEDAR profile. Following Norwest’s development of the mineral resource model, an in-place sand resource of commonly used frac sand size fractions in the tested area was calculated. A bulk density of 1.5 g/cm3 was used totaling 7,799 K Tonnes, (8,597 K Tons) the inferred mineral resource for each size fraction is:

  • 20/40: 3,758 K Tonnes (4,142,000 Tons);
  • 40/70: 3,155 K Tonnes (3,478,000 K Tons);
  • 70/140: 886 K Tonnes ( 977,000 K Tons).

It is important to note that the explored area addressed in Norwest’s report is less than five percent of the total acreage under quarrying leases held by NAFS.

“We are excited about this investment into fracturing sands” comments Min Kuang, president and CEO of Urban Select. “We see this transaction as an excellent base to build shareholder value. We look forward to updating shareholders on this Property, future acquisitions and investments.”

About Frac Sand:

Frac Sand is a proppant used in the oil and gas industry as a part of the hydraulic fracturing process – a means of increasing flow to the wellhead. Frac sand must have particular characteristics including achieving certain levels of crush resistance, sphericity, and roundness. It is therefore a relatively rare commodity.

About Urban Select Capital Corp.

Urban Select Capital Corp. is an investment issuer focused on investing growth capital in private and public companies in a broad range of sectors including natural resources, media & entertainment, education, healthcare and consumer retail services. Urban Select’s management team is composed of investment professionals combining an Asian background with Western education and extensive experience in investment banking, venture capital and fund management in Canada, China and the U.S.

For further information, please contact:

David Yoo

Chief Financial Officer and Managing Director

Phone: 604-689-0618

Neither the 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.

Caution Regarding Forward-Looking Statements – This news release contains certain forward-looking statements, including statements regarding the business of the Company. These statements are subject to a number of risks and uncertainties. Actual results may differ materially from results contemplated by the forward-looking statements. When relying on forward-looking statements to make decisions, investors and others should carefully consider the foregoing factors and other uncertainties and should not place undue reliance on such forward-looking statements. The Company does not undertake to update any forward looking statements, oral or written, made by itself or on its behalf except as required by law.

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