December 15, 2010
DK Aggregates LLC has retained Equity Partners, Inc. to sell, or seek equity or a joint venture partner for, its 1,700 acre gravel and sand pit business located off Highway 607. The U.S. Bankruptcy Court for the Southern District of Mississippi has entered an order approving the engagement of Equity Partners, Inc., which will conduct an accelerated sale of the going concern business or its assets.
DK Aggregates is located near Nicholson, Miss., in the Stennis Space Center Buffer Zone (no development is allowed in the Buffer Zone, but natural resource harvesting is allowed, including mining, timber, farming, etc.). The current owner acquired the property in 2003 and invested more than $3 million in infrastructure and equipment. The operation employs between 10 and 30 people depending on projects in house. Prior to the acquisition, the property had been harvested for timber and used for corn farming.
According to third party drill reports in the information book provided by Equity Partners, the proven gravel reserves on the property are approximately 18 million tons, and proven frac sand and other sand reserves are 30 million tons. The drillings supporting these estimates were done on only 500 acres of the property. Another 600 acres is believed to have similar reserves as described above. DK’s property also includes an additional 600-acre area suitable for a landfill, and some of the preliminary excavation and permitting was completed for that purpose.