Heemskirk Consolidated (ASX:HSK) should firm in trade after...

Heemskirk Consolidated (ASX:HSK) should firm in trade after receiving an incomplete, conditional and non-binding proposal to form a joint venture to develop its Moberly Silica Operations in Canada.

Heemskirk is now assisting the party with due diligence, and has agreed to a period of exclusivity that will expire on 2nd October 2014. 

At this stage HSK is not in a position to identify the party, but has noted that it is a significant investor in the mining industry.

Moberly has a capital cost of C$26 million, NPV of C$65 million and payback of about three years.

It currently produces a frac sand product, which is a key element required for hydraulic fracture stimulation of oil and gas wells.

Heemskirk is capitalised at around $18 million, holds $12.9 million in cash, along with a $4.2 investment in a Canadian tungsten company.