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Athabasca Minerals shares private placement


October 29, 2020
By Athabasca Minerals

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Calgary, Alta. – Athabasca Minerals Inc. (AMI) announced a non-brokered private placement of $1,480,000 based on the issuance of 9,866,668 common shares at a price of $0.15 per common share.

Highlights:

  • The private placement, priced at $0.15/share, represents a 30 per cent premium to the market’s last closing price of AMI, with no finders-fee payable.
  • The private placement is anchored by JMAC Resources Ltd. (JMAC) as lead investor, where Jon McCreary, CEO of JMAC, is also appointed to AMI’s board of directors.
  • Insider ownership of the Corporation’s common shares has increased to 22.5 per cent (from previously 8.1 per cent) based on contributions from officers, existing board directors, and recognizing McCreary’s new board appointment.
  • Proceeds from the private placement will be primarily used to advance Front-End Engineering & Development (FEED) activities for the Duvernay Sand Project and for general corporate purposes.
  • Turn-key Processing Solutions, the design-build contractor currently conducting the FEED for the Duvernay Project, is also participating in the private placement.

Merits of the private placement:

The Duvernay Project, which resides under the Corporation’s wholly-owned subsidiary, AMI Silica Inc., is making meaningful progress with FEED, on what the company says aims to be one of the greenest sand processing operations in North America, in conjunction with its international industrial partner. As project activities ramp up toward Final Investment Decision (FID), planned in 1H-2021, this private placement primarily supports AMI’s contribution to associated FEED expenditures, and to a lesser extent for general corporate purposes.

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JMAC, the Canadian affiliate of JMAC Resources Inc. in the United States, has subscribed to receiving 6,666,667 Common Shares based on gross proceeds of $1 million, pursuant to the terms of a subscription agreement. At closing of the private placement, JMAC’s ownership of AMI’s outstanding Common Shares will represent a 13.5 per cent stake in the Corporation.

The private placement is further supported by TPS, an experienced design-build contractor headquartered in Franklin, Tennessee, with an extensive background in engineering, constructing and operating numerous silica production facilities in North America totalling over 30 million tons in annual capacity.

Board appointment— Jon McCreary

Athabasca Minerals also announce McCreary, CEO of JMAC Resources Inc, and its JMAC Resources Ltd. in Canada will be joining AMI’s Board as an independent director effective November 1, 2020.

“We are excited to have Mr. McCreary joining Athabasca’s Board at a pivotal stage in the Corporation’s delivery on its strategic plan. Mr. McCreary has proven industry experience in successfully building JMAC Resources Inc. in the United States into a strong company with many synergies and overlapping interests relevant to AMI’s business model. We look forward to his role on the Board as we continue to expand and grow AMI’s business interests in the North American marketplace,” said Robert Beekhuizen, AMI’s CEO.