Hunt Global Resources Inc. (HGCO) vaults in price on completion major purchase

Hunt Global Resources Inc. (OTCBB:HGCO) shares surged 12.2% Wednesday morning to $2.30, on word of a potentially lucrative new purchase. Volume was a fairly quiet 2,935 shares, catching up on a daily average of 8,916.

The natural resources up-and-comer announced today that it has entered into an agreement to acquire the mining rights to over 400 acres of land containing an estimated 100 million tons of Northern White frac-sand.

The transaction will be completed based on typical due diligence that includes approvals by regulatory agencies, further testing of the sand deposits and final negotiations of the terms of the lease.

“We’re extremely excited about the opportunity to mine this property,” said Hunt CEO George T. Sharp. “Northern White frac-sand is considered the premier sand in the industry; it is also becoming extremely scarce, especially in large quantities such as contained on this property.

“Currently, the demand for high-quality frac-sand far exceeds the supplies that are available. Moreover, the increased number of oil and gas wells that are projected to be drilled in the ‘shale’ formations during the next five years should continue to widen the gap between supply and demand, causing frac sand prices to continue to escalate,” Mr. Sharp continued.

Houston-based Hunt Global Resources, Inc. is a natural resource company focusing on specialty sands called “frac” sand, which is an essential component in the production of oil and gas.