Canadian Premium Sand Inc. (“CPS” or the “Company”) (TSXV: CPS) is pleased to announce it has entered into an Option to Purchase Agreement (the “Option Agreement”) with the City of Selkirk for the acquisition of land zoned for heavy industrial purposes located northwest of the intersection of Manitoba Highways 4 and 9A (the “Site”).
The Option Agreement secures an attractive land parcel, consisting of approximately 121 acres, with attributes that are ideal for the development of the Company’s patterned solar glass manufacturing facility (the “Facility”). See here for a rendering of the Facility.
The Site offers numerous benefits to CPS’s business model including:
Proximity to a 115kV power line located less than 2km from the Site, enabling access to renewable hydro-electric energy from Manitoba Hydro;
Pipeline access to the City of Selkirk’s wastewater plant, enabling the use of high-quality recycled water required for plant operations;
Proximity to natural gas distribution infrastructure that is adjacent to the Site’s south boundary, enabling efficient pipeline access;
Access to a Class 1 rail line located on the Site’s south boundary, enabling a low-cost rail spur connection;
Access to Winnipeg’s logistics hub, enabling efficient inbound and outbound deliveries with both rail and truck options;
Availability of a diverse and experienced labour pool to support up to 600 construction jobs and 300 manufacturing jobs for the first phase of the Facility; and
Future growth opportunities with sufficient land to accommodate up to 4 phases of capacity expansion.
“This is a key milestone in our development of North America’s first vertically integrated, patterned solar glass manufacturing facility,” says Glenn Leroux, President and CEO of CPS. “The City of Selkirk is a great community for this project. Selkirk has a clear and disciplined vision of sustainable development and CPS wants to be in a community that aligns with these values. The land parcel is perfect for our purposes and positions us to be the lowest cost and lowest carbon supplier of solar glass for the North American market. With the recent passing of the Inflation Reduction Act in the US, the demand growth for solar glass is expected to accelerate rapidly and we have already seen expansion announcements from large solar panel manufacturers. As we continue to advance conversations with customers, we are well positioned with a first-mover advantage to cement CPS as the supplier of choice in North America.”
City of Selkirk Mayor, Larry Johannson comments, “We’re pleased to be working with Canadian Premium Sand, a company that could have located its plant anywhere in North America but chose Selkirk. It’s an incredible vote of confidence in our city and it will bring hundreds of jobs here. It puts us on the map for the new green economy and will have a positive impact on Selkirk for generations. We are a city that is committed to sustainable economic development and CPS’s vision aligns with ours.”
Deputy Premier and Minister of Economic Development Cliff Cullen stated, “We are very excited that this project has achieved this significant milestone. This project embodies the inherent advantage Manitoba has as a global investment destination as the world pursues decarbonization. Manitoba’s abundant mineral resources and low-cost green, renewable energy to process those minerals into finished products, are increasingly attracting the attention of global businesses and investors.”
The exercise of the Option will result in a binding purchase agreement between the City of Selkirk and CPS. The exercise of the Option is conditional on:
Legal subdivision of the Site by the Province of Manitoba, and
Receipt of permits and approvals by CPS for the construction and operation of its planned solar glass manufacturing facility.
