Annual Financials Filed
March 31, 2009
Edmonton, Alberta - March 31, 2009 - Athabasca Minerals Inc. (the "Company" or "Athabasca" - TSX Venture: ABM) is pleased to announce the filing of its audited annual financial results for the period ending November 30th, 2008.
MAJOR EVENTS IN THIS PERIOD
- On May 1, 2008, the Board of Directors determined that it was the best interest of the Company to create and capitalize on market opportunities in the sand and gravel operation in Alberta by acquiring AMI. AMI is a private company with long term contracts with the Alberta Government to manage sand and gravel pits located in the heart of the oil sands industry in the Fort McMurray region.
- The purchase price of AMI was $8,400,000 in cash, $600,000 in promissory notes due to the vendors and 7,500,000 common shares of Athabasca. The purchase price was based on an independent valuation of AMI.
- In August, 2008, the Company obtained $9,000,000 credit facility from the Bank of Montreal to fund the cash portion of the acquisition.
- On November 20, 2008 the Company received shareholder approval for the acquisition of Aggregated Management Inc. ("AMI") allowing for the transaction to close on the same day.
- As a result of the Acquisition, the Company changed its financial year end from September 30 to November 30.
- During the fourteen months ended November 30, 2008, the Company assessed its mineral permits and has released permits on lands covering 327,486 hectares leaving a balance of approximately 490,000 hectares.
On November 20, 2008 the Company completed the acquisition of all the issued and outstanding shares of Aggregates Management Inc. ("AMI"). The transaction was effective as of June 30, 2008 with the Company acquiring 100% of the issued and outstanding shares of AMI. Transaction terms direct all AMI profits or losses and resulting assets and liabilities from July 1, 2008 to date of transaction completion to the benefit of the Company without any increase or decrease to the purchase price of AMI.
Based on the terms of the agreement, AMI was required to have a minimum working capital of $1,000,000 at the transaction effective date of June 30, 2008. All AMI profits or losses and resulting assets and liabilities from July 1, 2008 to the closing date of November 20, 2008 accrue to the benefit of the Company. AMI met its minimum working capital requirement as of June 30, 2008. For the period of July 1, 2008 to November 20, 2008 (closing date) AMI's working capital increased by $2,921,758 to $3,921,758 through AMI's profitable operations over this period. This increase in working capital has been accounted for in the purchase transaction of AMI. The financial statements for the fourteen months ended November 30, 2008 only include the results of operations of AMI from November 20, 2008 to November 30, 2008 or 11 days.
RESULTS OF OPERATIONS
During the fourteen months ended November 30, 2008, the Company had a net comprehensive loss of $1,264,605 (-$0.06 per share) compared to a net comprehensive loss of $245,482 (-$0.02 per share) for the twelve months ended September 30, 2007. For the two months ended November 30, 2008 the net comprehensive profit was $418,130 ($0.02 per share) as compared to the net loss of $459,779 (-$0.03 per share) for the three months ended September 30, 2007.
The operating revenue for the fourteen months ended November 30, 2008 is $447,457 as compared to the twelve months ended September 30, 2007 of $70,000. Operating revenue for the two months ended November 30, 2008 was $446,388 as compared to the three months ended September 30, 2007 of $Nil. The revenues increased due to the acquisition of AMI.
General and administrative expenses for the fourteen month period ended November 30, 2008 were $1,091,842 as compared to $374,925 for the twelve month period ended September 30, 2007. For the two month period ended November 30, 2008 administrative expenses were $230,621 as compared to $187,179 for the three month period ended September 30, 2007. The increase in administrative expenses for the two and fourteen month periods relate to increased administrative activities of the company including developing the head office and related personnel.
Stock based compensation decreased slightly to $347,578 for the fourteen months ended November 30, 2008 from $376,024 for the twelve months ended September 30, 2007. For the two month period ended November 30, 2008 stock based compensation was -$33,443 as compared to $255,024 for the three months ended September 30, 2007.
Combined interest expense increased to $20,290 for the fourteen months ended November 30, 2008 compared to $Nil for the twelve months ended September 30, 2007. For the two months ended November 30, 2008 combined interest expense increased to $17,290 from $Nil for the three months ended September 30, 2007. The increase in interest expense relates the interest on amounts related to the financing of the AMI acquisition. The AMI acquisition was financed by a $9,000,000 credit facility from a Canadian chartered bank and by $600,000 in vendor financing by way of promissory notes.
The complete financial statements for Athabasca Minerals for the period ending November 30th, 2008 and the Management Discussion and Analysis for the same period are available for viewing on SEDAR
About Athabasca Minerals:
Athabasca Minerals Inc. is a resource company engaged in the management, exploration and development of industrial minerals in Canada. The Company's aim is to find and develop local sources of industrial minerals essential to the economic development of specific high growth regions. The Company has substantial land holdings in the vicinity of Fort McMurray, Alberta and Peace River, Alberta. Independent from its mineral exploration activities, the Company is also pursuing sand and gravel exploration and development projects throughout northern Alberta. These activities include contracts works, gravel pit management, new gravel development and acquisitions of sand and gravel operations.
On Behalf of the Board
Dom Kriangkum, President, CEO
For further information, please contact firstname.lastname@example.org or Dean Stuart, Boardmarker Group, at (403) 517-2270 E: email@example.com.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
This news release contains forward-looking statements that involve risks and uncertainties. Forward-looking statements or information are based on current expectations, estimates and projections that involve a number of risks and uncertainties which could cause actual results to differ materially from those anticipated by Athabasca Minerals. The forward-looking statements or information contained in this news release are made as of the date hereof and Athabasca Minerals does not undertake any obligation to update publicly or revise any forward-looking statements or information, whether as a result of new information, future events or otherwise, unless so required by applicable securities laws.