I have recently invested in Company called Ultrasonic Industrials. They have 48 million ton silica deposit 12 miles north of Peace River Alberta. It is the largest deposit of its kind in Canada. Silica is used in making Frac Sand for the Oil and Gas Industry. Currently, the oil and gas industry imports 200,000 tons per year from the United States as they can not get enough Frac Sand for their needs in Canada.
As well there is a considerable market for Sodium Silicate which is used by the Pulp and Paper industry in bleaching process. There is an ever growing demand for this product as that industry gets away from Chlorine. Ultra Sonic has entered into an option for a process plant in Redcliffe, Alberta which can process 200 tonnes/day of sodium silicate.
Ultra Sonic Industrials will start production of the ore this Fall. They will sell all the Frac Sand they can produce for the first three years. The average price they will get for their products will be $180.00 ton. Based on their earning projections this stock is likely to be around the $2 range by year end and as high as $6 within three years.
They will have to demonstrate to the market they can actually sell this stuff. Another short falll is the number of shares they have out which is around 40 million mark. However, last Friday trading volume jumped to 150,000 from the usual 20-25000 shares. This week may be an indication if this one is going to go, if Friday's volume continues.
UIS can be contacted 403-448-0349 / Fax 403-448-2160. Currently trading at the $0.55 range
Good Luck
Kevin (Holder of UIS) |
