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Athabasca Acquires Two Aggregates Operations


Athabasca Minerals Inc. purchased two gravel operations located in the Wood Buffalo region of Alberta, Canada. The gravel pits include KM248 and Cowpar gravel properties and were acquired for a purchase price of CA$600,000.

Athabasca has been the developer and operator of the KM248 and Cowpar gravel pits since 2014, under an agreement with DeneCo Aggregates Ltd., a First Nations company. Under the terms of the agreement, Athabasca paid a royalty to DeneCo based on aggregate deliveries from the two gravel pits. 

With the purchase of the gravel pits, Athabasca will no longer be subject to royalty payments to DeneCo, and will be fully responsible for the marketing and sales to customers in the region. 

The KM248 property is located approximately 60 km southeast of Fort McMurray adjacent to Highway 881 and has year-round access. As of Sept. 30, 2016, there is an inventory of crushed aggregate available for immediate sale. The Cowpar property is located approximately 95 km southeast of Fort McMurray.

"This agreement demonstrates Athabasca's ability to successfully do business with a First Nations company," said Bill Woods, chief financial officer at Athabasca. "The acquisition of these pits is strategically significant for Athabasca in this region. The corporation is aggressively looking for other sand and gravel pit acquisition opportunities."