Athabasca Minerals Inc. (AMI) announced its financial results for the third quarter ended Sep. 30. Athabasca reported consolidated revenue of $0.4 million ($0.1 million in Q3 2019) with a total loss and comprehensive loss of $1.1 million, compared to income of $0.8 million in Q3 2019.
Chief executive Robert Beekhuizen stated, “Despite the challenges of COVID-19, AMI and our group of companies continues to focus on our objectives and making the right long-term decisions to advance our projects and strategic initiatives. The non-brokered private placement of $1.48 million in late October highlights the commitment to our Duvernay Sand Project, as well as the announcement of our joint venture partner to develop the sand facility.”
Athabasca Minerals reported the following key highlights:
- In September 2020, the corporation announced the advancement of a strategic joint venture (JV) initiative with an international industrial partner to pursue the Duvernay Sand Project. The aim of the JV initiative is to co-develop and operate one of the greenest sand facilities in North America. The JV initiative offers a number of unique synergies including industrial land for construction of the facility, as well as access to industrial utilities and transportation infrastructure.
- AMI Aggregates was impacted by lower activity due to COVID-19 as well as the economic downturn. Resumption of normalized production out of Coffey Lake or AMI’s other corporate pits is not anticipated until early 2021 without improvement to commodity prices and lifting of COVID-19 restrictions.
- AMI RockChain had increased sales volumes relative to Q2 2020; however, volumes continue to be impacted by the economic downturn from COVID-19.
- Subsequent to the third quarter of 2020, on Oct. 26, the corporation announced the closing of a $1.48 million non-brokered private placement, with the issuance of 9,866,688 common shares at a premium price of $0.15. Proceeds from the private placement will be used to advance front-end engineering and development activities for the Duvernay Sand Project and for general corporate purposes.
- The corporation also announced the addition of Jon McCreary, CEO of JMAC Resources Inc., to the board of directors, effective Nov. 1.
- AMI continues to pursue strategic partnering and joint-venture relationships that will advance its industrial minerals growth strategies, diversify its revenue generation, and increase options for access to lower-cost capital funding.
Athabasca and its subsidiaries will continue to be operational through the new enhanced public health directives issued by the Province of Alberta, Canada, as per the recommendation of health officials, most employees will be working from home. AMI continues to develop both safety and technology features to better allow its customers and suppliers a safe and efficient method to continue meeting their aggregate needs. “However, all operations could be affected by any new COVID-19 related issues or new lockdown directives, as it will be more challenging for our customers to move forward with projects during a lockdown.” the company stated.