Aggregates Business – Lender Sale
1,600 Acre +/- Sand and Gravel Mine
Gulf Coast Region
Estimated Reserves as 1/1/2014:
- Gravel – 16.620MM Tons; Frac Sand – 24.244MM Tons (requires processing to meet ISO/API standards); Other Sand – 1.401MM Tons
- The drillings supporting these estimates were done on only 500 acres of the property.
- The remaining 600 mineable acres may have similar reserves as described above.
Location: 15 minute drive to Slidell, LA, 50 minutes to New Orleans, and 60 minutes to Biloxi, MS
- Excellent location to reach multiple attractive markets. Entrance is off Highway 607 in Nicholson, MS.
Located in the Stennis Space Center Buffer Zone (no development, but natural resources harvesting allowed, including mining, timber, farming, etc.)
Historical Revenue: 2012 – $ 760,000 2013 – $ 2,631,000
Y-T- D Revenue: $ 280,000
Equipment Highlights: All equipment is included: Bucket Wheel Dredges, Conveyors, Stackers, Screens, Hydro Screener, Grizzley Screens, Gravel Wash Plants, Piping, Service Truck, Water Pumps.
Company Overview: The mine was purchased as a part of a plan for an affiliated company to build a nearby drying facility, and then be able to mine, process, dry, sort, store and sell valuable frac sand to the fracking industry (frac sand sells for up to $45/ton versus construction sand selling for $2.50/ton). Construction of the drying facility did not proceed as planned, stalling the potential frac sand revenue, which resulted in a default on the loan obligations and foreclosure on the mine by the secured creditor. The mine has since January 2013 been, and is currently being, managed by Shale Support Services, with sand and gravel being mined to supply the construction industry.
This is an outstanding opportunity to capture sand and gravel reserves with an operating aggregates business in a location with substantial demand. There may be numerous potential opportunities for synergistic partners, including an opportunity to associate with (or build) a drying facility to realize frac sand revenues.
Stalking Horse Bid Deadline: April 18 Final Bid Deadline: May 5 Auction: May 9