CPS Announces Shift in Business Strategy to Focus on Sustainable Float Glass Manufacturing
CPS Announces Shift in Business Strategy to Focus on Sustainable Float
Glass Manufacturing
CALGARY, Alberta, Feb. 03, 2021 (GLOBE NEWSWIRE) -- Canadian Premium Sand Inc. (“CPS” or the “Company”)
(TSXV: CPS) is pleased to announce a shift in the direction of the Company’s business strategy to focus on developing its
Wanipigow silica sand deposit into a sustainable float glass manufacturing and coating facility. This facility would be designed
to utilize the best available technology with a focus on sustainability initiatives such as waste heat recovery and optimizing
use of Manitoba’s abundant and inexpensive renewable electricity to set a new standard for low-carbon footprint glass
manufacturing. The greater Winnipeg area presents an opportunity for significant long-term manufacturing cost and logistics
advantages for a float glass facility focused on energy efficient architectural glass or solar glass.
The shift in business strategy is the result of an internal review of the various applications for the Company’s silica sand
deposit which identified float glass manufacturing as a high potential application for which the Company’s silica sand is ideally
suited. Float glass manufacturing has shown better overall project economics and market stability compared to Wanipigow
proppant production. This internal review is supported by an independent business study commissioned by the Company and
conducted by an independent international glass markets focused consulting group, GlassGlobal Consulting GmbH
(“GlassGlobal”). A full summary of the revised strategy and information on the business opportunity can be viewed at
www.wanipigowglass.com.
“Today there is not a single float glass manufacturing facility in Canada,” stated Glenn Leroux, President and CEO of CPS.
“Every pane of glass utilized in this country is imported. Based on the business study and market projections completed by
GlassGlobal, current dynamics in North America show a manufacturing supply deficit demonstrating the requirement for up to
four additional float glass facilities by 2025 for North America to be self-sufficient. Establishing a float glass facility in Canada
using responsibly sourced local raw materials and responsibly produced Canadian energy creates a unique opportunity to
provide much needed sustainably manufactured float glass to Canadian, North American and international markets in an
environmentally responsible manner.”
Float glass is a broad industry term for an established and proven method of producing flat panes of glass. Numerous products
begin their useful life as float glass including glass with specialized energy efficient coatings for architectural applications,
glass for solar panels, automobile glass, tempered and safety glass. Energy consumption by buildings is a significant source
of Canada’s overall greenhouse gas emissions. Use of energy efficient architectural float glass in residential homes and
commercial buildings is a key component of emissions reduction strategies as outlined by the federal department of
Environment and Climate Change Canada in ‘Canada’s Buildings Strategy’ document. The demand for solar glass to
manufacture solar panels is expected to accelerate in the coming years as a result of global electricity grid de-carbonization
and net-zero climate action plans. Energy efficient architectural glass and solar glass are both carbon-negative products based
on a life-cycle carbon assessment as they save or avoid more energy consumption and associated emissions after installation
of end use products than is consumed during manufacturing.
Preliminary test work shows that the Wanipigow Lower Black Island Formation (LBI) sand at the test site has potential for use
in the manufacture of ultra-clear, energy efficient architectural float glass as well as solar glass for use in solar panels. The
testing of a small subset of the Company’s silica sand was conducted by an independent ISO/IEC 17025:2018 accredited
laboratory specializing in glass and raw materials analysis, the IGR - Institut für Glas- und Rohstofftechnologie (Institute of
Glass and Raw Material Technology - IGR). Three individual samples were collected from archived drill cores for test work and
focused on a portion of the overall Wanipigow sand deposit within the deposit’s LBI sub-unit. The test work was performed in
accordance with standard testing of oxidic raw materials for glass (DIN 51086-2) and included sieving, ICP-OES analysis,
beneficiation tests followed by additional ICP-OES analysis, and melt tests. The preliminary results demonstrate that the LBI
sand at this locale: i) contains high calculated silica (94.1% to 97.2% SiO 2) with low detrimental elements such as iron, ii) is
easily beneficiated to higher calculated silica (99.3% to 99.5% SiO 2) using standard methods such as a bumping table and a
magnetic separator, and iii) melt tests yielded no microscopic relics of un-melted grains.
The Company expects to engage a Front-End Engineering and Design (FEED) contractor during the first quarter of 2021 to
work on site selection, facility design, site layout, and potential capital and operating costs. The Company will also initiate
offtake discussions in concurrence with the FEED study and add glass industry expertise to the management team to develop
a robust business plan to achieve a final investment decision.
The Company’s silica sand deposit is extensive as detailed in a National Instrument 43-101 (“NI 43-101”) compliant Technical
Report dated March 20, 2020. This report was based primarily on silica sand for the oil and gas industry. Based on the typical
silica sand requirements of a single float glass plant, the Company has ample silica sand supply to also pursue other
industrial market opportunities.
Technical Disclaimer
The Company advises and wishes to make clear that it is not basing any future decision to produce trial or commercial glass
products from the Lower Black Island Formation sand on a current economic analysis in a Preliminary Economic Assessment
(“PEA”) or mining study (Pre-Feasibility or Feasibility Study) to demonstrate the economic and technical viability of the
project. Accordingly, there is increased uncertainty and specific economic and technical risks of failure associated with any
production decision. These risks, among others, include areas that are analyzed in more detail in a PEA or Feasibility Study,
such as applying economic analysis to resources or reserves, more detailed metallurgy, and a number of various specializing
studies.
Mr. Roy Eccles P. Geo., a “Qualified Person” within the meaning of NI-43-101, has reviewed and approved the scientific and
technical content associated with this News Release and who by reason of education, affiliation with a professional
association (as defined in NI 43-101) and past relevant work experience, fulfills the requirements of a Qualified Person as
defined in NI 43-101, and he is independent of the Company applying all of the tests in Section 1.5 of NI 43-101CP.
About Canadian Premium Sand Inc.
The Company is an exploration stage company which is developing its Wanipigow silica sand deposit in Manitoba and
evaluating markets to support the basis for a commercial operation. The Company is a reporting issuer in Ontario, Alberta and
British Columbia. Its shares trade on the TSX Venture Exchange under the symbol "CPS".
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.
CONTACT INFORMATION:
Canadian Premium Sand Inc.
Glenn Leroux
President and Chief Executive Officer
Investor Relations
587.355.3714
www.wanipigowglass.com
www.canadianpremiumsand.com
Forward Looking Information
Certain statements contained in this press release constitute forward-looking statements relating to, without limitation,
expectations, intentions, plans and beliefs, including information as to the future events, results of operations and the
Company’s future performance (both operational and financial) and business prospects. In certain cases, forward-looking
statements can be identified by the use of words such as “expects”, “estimates”, “forecasts”, “intends”, “anticipates”,
“believes”, “plans”, “seeks”, “projects” or variations of such words and phrases, or state that certain actions, events or results
“may” or “will” be taken, occur or be achieved. Such forward-looking statements reflect the Company's beliefs, estimates and
opinions regarding its future growth, results of operations, future performance (both operational and financial), and business
prospects and opportunities at the time such statements are made, and the Company undertakes no obligation to update
forward-looking statements if these beliefs, estimates and opinions or circumstances should change. Forward-looking
statements are necessarily based upon a number of estimates and assumptions made by the Company that are inherently
subject to significant business, economic, competitive, political and social uncertainties and contingencies. Forward-looking
statements are not guarantees of future performance. In particular, this press release contains forward-looking statements
pertaining, but not limited, to: the plan to develop a robust advancement plan for the Company and the Project and the
benefits to be derived therefrom; projections about future improvements in market conditions and silica sand pricing; future
development plans; industry activity levels; industry conditions pertaining to the silica sand industry; the ability of and manner
by which the Company expects to meet its capital needs; and the Company's objectives, strategies and competitive strengths.
By their nature, forward-looking statements involve numerous current assumptions, known and unknown risks, uncertainties
and other factors which may cause the actual results, performance or achievements of the Company to differ materially from
those anticipated by the Company and described in the forward-looking statements.
Any financial outlook and future-oriented financial information contained in this press release regarding prospective financial
performance, financial position, IRR or cash flows is based on assumptions about future events, including economic
conditions and proposed courses of action based on management’s assessment of the relevant information that is currently
available. Projected operational information contains forward-looking information and is based on a number of material
assumptions and factors, as are set out above. These projections may also be considered to contain future oriented financial
information or a financial outlook. The actual results of the Company's operations for any period will likely vary from the
amounts set forth in these projections and such variations may be material. Actual results will vary from projected results.
Readers are cautioned that any such financial outlook and future-oriented financial information contained herein should not be
used for purposes other than those for which it is disclosed herein.
The forward-looking information and statements contained in this document speak only as of the date hereof and the
Company does not assume any obligation to publicly update or revise them to reflect new events or circumstances, except as
may be required pursuant to applicable laws.