Athabasca Minerals Gives Update on Operations

Athabasca Minerals Inc. announced its financial results for the second quarter ended June 30. Operating loss improved by 63 percent and 36 percent for the past three and six months to $0.4 million and $1.4 million.

Other highlights included:

  • The corporation sold surplus equipment for $2,922,623 with a portion of proceeds used to repay lease obligation of $273,913.
  • Susan Lake Closure Plan is under review with Alberta, Canada, Environment and Parks. Milestones for progressively closing the Susan Lake gravel pit will continue into 2019. Revised dates will be confirmed once the Susan Lake Closure Plan is approved.
  • Susan Lake gravel pit remains operational under Overholding Tenancy status. Athabasca’s volume-based pit management fees increased by 17 percent to $1.2 million for the six months period.
  • Athabasca’s wholly owned subsidiary AMI Silica Inc. submitted its Development Permit application in late July for review and approval by the Town of Mayerthorpe and is working on a long-term lease agreement with the property owner and actively having discussions with capital firms with respect to financing of the Firebag frac sand project.
  • AMI Silica site selection and wash/dry plant design activities have been substantially completed.

Over the next 12 months, the corporation is actively addressing and working on various strategic and operational initiatives relating to the following:

  • Resolution of the Syncrude lawsuit.
  • Conclude the Susan Lake Management Renewal Contract and execute the closure program of the Susan Lake Gravel Pit (still pending approval by AEP).
  • Secure financing for AMI Silica’s development project.
  • Develop strategic trucking partnership to optimize logistics operating cost for AMI Silica.
  • Conclude long-term lease agreements for land positioning in Mayerthorpe, AB for AMI Silica.
  • Obtain pre-orders for year one of planned AMI Silica production.
  • Sell existing stockpiled inventories of sand and gravel from Athabasca corporate pits.
  • Selectively pursue conventional aggregate companies for potential acquisition.
  • Further develop the Aggregates Marketing arm to broker sales of third party inventories to a larger market and expanded customer base in Western Canada.

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