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Athabasca Minerals Inc. Receives Audited Financials of Aggregates Management Inc. for Proposed Acquisition

June 18, 2008

Edmonton, Alberta - June 18, 2008 - Athabasca Minerals Inc. ("ABM" or the"Company") is pleased to announce it has received the audited financial statements for Aggregates Management Inc. ("AMI"). These are a key requirement in the proposed non-arms length acquisition of AMI by ABM.

AMI is a private gravel management company which operates two gravel properties (the Susan Lake Gravel Pit and the Poplar Creek Gravel Pit) located near Fort McMurray in the heart of oil sands activity. The proposed acquisition is a major milestone for ABM in its strategy of becoming a major player in the development and delivery of gravel and industrial minerals to the Alberta economy.

On March 17, 1998, AMI entered into a 10 year agreement to operate the Susan Lake Gravel Pit which has subsequently been renewed for another 10 years. The Susan Lake Gravel Pit is one of the largest gravel pits in Canada and supplies the majority of gravel to the energy companies operating and developing oil sands resources in the Athabasca Oil Sands region. The second property, the Poplar Creek Gravel Pit, commenced operations in July of 2003, also for a 10 year period. The sale of aggregates from these properties is the main activity of AMI.

The following highlights are based on the audited financial statements for 2007 and 2006 by Tober Hembling Callihoo Chartered Accountants of Edmonton, Alberta:

For the year ended November 30, 2007   

Revenue $9,861,452
Expenses, net of other income and before  
Performance Based Management Fees to corporate shareholders $5,817,951
EBITDA before Performance Based Management Fees to  
corporate shareholders $4,125,044
Performance Based Management Fees to corporate shareholders $3,619,500
EBITDA $505,544
Earnings before taxes $424,001
Assets $4,947,713
Liabilities $3,133,552
Working Capital $969,372
Shareholders' equity $1,814,161

Note: Performance Based Management Fees paid to corporate shareholders consist of a management fee paid to the shareholders of AMI. Upon closing of the proposed acquisition these Performance Based Management Fees will cease and the officers of AMI/ABM will enter into standard Consulting/Management Agreement Contracts with ABM. 

For the year ended November 30, 2006  

Revenue $7,029,281
Expenses, net of other income and before  
Performance Based Management Fees to corporate shareholders $4,575,247
EBITDA before Performance Based Management Fees to  
corporate shareholders $2,404,507
Performance Based Management Fees to corporate shareholders $1,995,000
EBITDA $409,507
Earnings before taxes $459,034
Assets $3,949,080
Liabilities $1,890,513
Working Capital  $1,673,392
Shareholders' equity $2,058,567

For the year ended, November 30, 2007, a total of 7,217,167 tonnes of sand and gravel was sold from the Susan Lake Gravel Pit. 

"We expect that sales in 2008 will exceed last year due to an increase in oil sands activities and infrastructure development in the Fort McMurray area," stated Dom Kriangkum, President of AMI and President and CEO of ABM. "To date, we have sold 1,261,000 tonnes more than the same period last year. Last month, alone, we sold 1,203,639 tonnes and traditionally summer to fall is our busiest period. We already have orders approaching last year's total amount. The acquisition of AMI, when completed, will provide cash flow and establish a good foundation for ABM."

"In addition to our gravel properties in the Grimshaw area, we are actively seeking and exploring for new sand and gravel resources throughout northern Alberta for oil sands development, roads and highway construction. This acquisition is only the beginning of our corporate mandate. We will continue to look for other sand and gravel opportunities. These potential acquisitions will benefit the growth of the Company and propel ABM to become one of the leading gravel companies in Canada." 

AMI's mandate is to manage the removal of surface materials for public use and is responsible for:  

  • salvaging all merchantable timber;
  • soil salvaging and handling;
  • overburden management;
  • supervising and managing the removal of surface materials;
  • maintaining the road network within the pit;
  • providing aggregate washing facilities;
  • operating scales and weighing all highway trucks;
  • conducting a volumetric survey of aggregate removed;
  • reclaiming depleted areas in collaboration with the oil companies whose oil sands reserves underlie the gravel formation; and
  • collecting and paying royalties to Alberta Sustainable Resource Development on a monthly basis.

About Athabasca Minerals:

Athabasca Minerals Inc. is an innovative exploration company formed to explore for mineral resources other than oil, gas and oil sands in northeast Alberta. The Company's aim is to find and develop local sources of the minerals essential to the economic development of the region (i.e. minerals used in oil sand processing, construction, and in the everyday requirements of community living). The Company has substantial permit lands in the vicinity of Fort McMurray, Alberta with identified formations of an assortment of industrial minerals including salt, silica sand, gypsum, limestone, and some kimberlite indicators.

Independent from its mineral exploration activities, the Company is also pursuing sand and gravel exploration and development projects throughout northern Alberta. These activities include contract works, gravel pit management, new gravel pit development and the acquisition of other sand and gravel operations.

For further information, please contact
E:  or
Dean Stuart, Boardmarker Group, at (403) 517-2270 E: . or
BTG Financial Inc. at Toll Free 1-877-717-0790 E: 

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.

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