Athabasca Minerals Inc. Announces Financing Term Sheet
Edmonton, Alberta January 26, 2012 - Athabasca Minerals Inc. (the "Corporation" or "Athabasca" - TSX Venture: ABM) is pleased to announce that it has signed a non-binding Term Sheet with a Canadian chartered bank for a new credit facility in the approximate amount of $10 million dollars.
The new financing arrangement includes $4,000,000 of term debt that will be used to retire approximately $3,700,000 of callable loans outstanding with the Corporation's current lender, providing a residual cash amount of nearly $300,000. A lease financing component is available for the acquisition of $3,000,000 of machinery and equipment for use in Athabasca's aggregate operations. As well, a $3,000,000 operating line of credit will first replace $1,353,000 of existing letters of credit, resulting in more than $1,600,000 of new margin-based borrowing available to finance its working capital requirements.
The term debt and the leasing arrangement are to be repaid over a four and five year period respectively. A maturity date will not apply to the operating line of credit, thus there are no scheduled principal repayment terms, only regular funding of applicable interest charges.
"Accessing nearly $5,000,000 of additional bank financing at this growth stage in our company's development is highly significant to the Corporation" says Dom Kriangkum, Athabasca President and CEO. "This will provide funds for essential capital investment, and also flexible financing available to fund increased working capital requirements resulting from expanding operations."
The Term Sheet outlines terms and conditions that will be formalized in a Commitment Letter forthcoming from the new lender. The Commitment Letter is subject to completion of further due diligence and final approval by the lender prior to its issuance.
About Athabasca Minerals Inc.
Athabasca Minerals Inc. is a resource company involved in the management, exploration and development of aggregate projects. These activities include contracts works, aggregate pit management, new aggregate development and acquisitions of sand and gravel operations. The Corporation also has industrial mineral land holdings in the vicinity of Fort McMurray and Peace River, Alberta, for the purpose of locating and developing sources of industrial minerals and aggregates essential to high growth economic development.
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Neither the TSX Venture nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture) accepts responsibility for the adequacy or accuracy of this 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 the Corporation. The forward-looking statements or information contained in this news release are made as of the date hereof and the Corporation 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.
The securities of Athabasca have not been, nor will be, registered under the United States Securities Act of 1933, as amended, and may not be offered or sold within the United States or to, or for the account or benefit of, U.S. persons absent U.S. registration or an applicable exemption from U.S. registration requirements. This release does not constitute an offer for sale of securities in the United States.