Canadian Premium Sand Inc. Provides Operational Update
CALGARY, Alberta, June 30, 2025 (GLOBE NEWSWIRE) -- Canadian Premium Sand Inc. (“CPS” or the “Company”) (TSXV: CPS) is pleased to provide an operational update on development of its solar glass manufacturing plans.
US Project
The Company continues to advance development of its proposed southern US pattern solar glass manufacturing facility (the “US Project”) anticipated to produce 4GW equivalent pattern solar glass annually.
The Company has executed a Letter of Intent proposal for a 12-year lease of a property where a glass manufacturing facility operated prior to it shutting down in 2020. With existing infrastructure for logistics, material handling on-site and an 850,000 square foot building, the site provides an opportunity for capital efficient market entry for a pattern solar glass manufacturing operation. Under the lease terms, the Company will have an option to purchase the site at a pre-determined price during the lease period.
The selected site for the US Project supports our customers’ efforts to develop a transparent and domestic US manufacturing supply chain and aligns with the stated goal of the US federal administration to reshore manufacturing. The Company has executed memorandums of understanding (“MOUs”) with customers for offtakes representing approximately 50% of production capacity. In addition to the executed MOUs, the Company is advancing negotiations with key customers to secure binding take-or-pay offtake agreements.
The Company continues to progress engineering and design efforts for the US Project and has completed a Front-End Engineering and Design study that indicates a capital cost of approximately US$350 million. The process for selecting engineering, procurement and construction contractors and equipment suppliers for the pre-construction process has been completed. The Company has selected Toledo Engineering Co., Inc. and Bottero S.p.A. to advance pre-construction engineering, working with Green City Glass as the Owner’s Engineer. The pre-construction engineering effort will result in a refined capital cost and construction schedule to support the Company’s construction financing efforts.
While the Company continues to pursue strategic partners for development of its US Project, no definitive or binding agreements are in place at this time.
Selkirk Project
With annual domestic solar panel manufacturing capacity in the US at 52GW, demand for solar glass has reached a new high. While the Company continues to pursue financing options for its proposed vertically integrated Canadian pattern solar glass manufacturing facility in Selkirk, Manitoba (the “Selkirk Project”), the uncertainty related to announced US import tariffs on Canadian goods as well as the potential for Canadian counter tariffs has resulted in a challenging financing environment for a Canadian project. Stability in the Canada-US trade relationship will be key for the Company to advance the Selkirk Project. As such, the Company’s near-term focus is on advancing the US Project to prepare for construction financing.
Changes to Policy Impacting the North American Solar Market
In addition to the US and Canadian tariff uncertainty impacting the Selkirk Project, legislative amendments proposed to the previously enacted Inflation Reduction Act (the “IRA”) passed by the US House of Representatives on May 21, 2025 creates uncertainty related to the sustainability of the IRA and associated incentives for domestic production. The recent amendments eliminate the domestic content bonus provision from 2028 onwards that would otherwise be available to end-users of solar panels that utilize a higher portion of components manufactured in the US. If the amendments as currently proposed are enacted into law, there will be an adverse effect on the Company’s ability to secure premium pricing for US made pattern solar glass over Asia-Pacific import glass prices.
The policy amendments in the US also propose rigorous regulations targeting Prohibited Foreign Entity (“PFE”). Companies with their principal place of business in China would be categorized as a PFEs in the proposed legislation. The majority of global production of pattern solar glass is currently supplied by companies based in China. Enacting this policy could have significant negative impacts on the import of pattern solar glass from Asia-Pacific, a scenario that would enhance the value proposition and commercial viability of North American pattern solar glass supply for solar panel components, particularly glass.
The Company continues to advance both the US and Selkirk Projects and is closely monitoring legislative actions in the US, the impact of proposed legislation to IRA incentives and ongoing trade matters, particularly between Canada and the US. Further, the Company awaits clarity on Canadian domestic economic policy following the April 28, 2025 Canadian federal election. The outcome of these actions and policies will influence the Company’s strategy and timeline of securing financing for its projects.
About Canadian Premium Sand Inc.
The Company owns a large silica sand deposit as detailed in a National Instrument 43-101 compliant Technical Report dated April 9, 2025. The contents of this Technical Report support the Company’s plans to develop pattern solar glass manufacturing capacity utilizing its silica sand supply of the necessary physical characteristics for the operating life of the proposed facilities.
The Company is developing North American manufacturing capacity for ultra-high-clarity pattern solar glass through multiple facilities, utilizing high-purity low-iron silica sand from its wholly owned Wanipigow quarry leases. The Company’s proposed low-carbon facility located in Selkirk, Manitoba will utilize renewable Manitoba hydroelectricity and is forecasted to produce 6GW of low-carbon solar glass. The Company’s planned facility located in the US is forecasted to produce 4GW of domestic solar glass. With a combined 10GW of annual proposed pattern solar glass manufacturing capacity, the Company is positioning to become the largest and preferred supplier in North America. The Company is a reporting issuer in Ontario, Alberta and British Columbia. Its shares trade on the TSXV 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
glenn.leroux@cpsmail.com
Investor Relations
IR@cpsmail.com
587.355.3714
www.cpsglass.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 anticipated benefits of the US Project including anticipated annual production therefrom and the opportunity for a capital efficient market entry; the anticipated capital costs of the U.S. Project and that the pre-construction engineering effort will result in a refined capital cost and construction schedule to support the Company’s construction financing efforts; the ability to advance negotiations with key customers to secure binding take-or-pay offtake agreements; the pursuit of strategic partners for development of the US Project and the ability to enter into definitive agreements; the financing of the Selkirk Project and US Project; the anticipated market for the Company 's patterned solar glass; future development plans; industry activity levels; industry conditions and uncertainty pertaining to the solar glass manufacturing 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. 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.
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