Athabasca Minerals Inc. announced that its joint venture partnership, AMI Silica LLC has finalized a non-dilutive financing for $2.7 million to support expansion initiatives at its Hixton, BC, Canada, frac sand operations. The corporation also announced that it has entered into an arms-length investor-relations agreement with Boardmarker Group, led by Dean Stuart.
Under the terms of this financing, the facility is backed by eligible equipment owned by AMI Silica. This loan will mature on Aug. 1, 2025, unless paid out at an earlier date.
Dana Archibald, AMI Silica’s president and AMI’s chief executive officer, said, “This funding will support AMI Silica LLC’s expansion and growth strategy. As market demand continues to grow we are working on initiatives that will provide increased logistics capabilities to support the demand and provide added revenue streams. We have a strong customer base and are finding ways to grow strategically to satisfy their requirements.”
The board of directors of AMI Silica has approved, based on this new financing and the company’s strengthened working capital, to repay a portion of the original shareholders loan to both partners. Both JMAC Energy Services and AMI received a payment of $600,000, equal to $800,500 Canadian dollars.
David Churchill, AMI’s chief financial officer, stated, “We are excited to bring Dean on board to support our Investor Relations initiatives and to bring greater outreach to the market, in addition to raising our profile with current and potential investors. Dean has a long history with the company, dating back to 2007, with a solid understanding of our assets as well as strong relationships with our shareholder base. We look forward to working with Dean as we continue to introduce a more focused and aligned organization, driven by the many opportunities that we have before us.”