- Athabasca Minerals Inc.’s (AMI) subsidiary AMI Silica LLC, has entered into a definitive agreement with JMAC Resources Limited to acquire sand assets located in the U.S.
- JMAC Resources Limited has agreed to purchase 7,375,000 AMI common shares at a price of $0.20 per share for gross proceeds of $1.47 million in a non-brokered private placement
- The strategic assets are comprised of real-estate, an operational sand mine and processing plant capable of up to two million tons production per year, fixed storage, two rail trans-loads, mobile equipment, and active supply chain contracts including rail cars, for a cash consideration of $1.2 million and the assumption of reclamation liabilities of approximately US$6.4 million
- All proceeds from the private placement will be used to fund the cash consideration and closing costs for the strategic acquisition
- Athabasca Minerals Inc.’s (AMI) is up 15.9 per cent, trading at $0.26 per share as of 1:56 p.m. EST
Athabasca Minerals (AMI) subsidiary AMI Silica LLC, has entered into a definitive agreement with JMAC Resources Limited to acquire sand assets.
The acquisition will be completed by AMI Silica LLC, the 50 per cent owned subsidiary of Athabasca Minerals.
The other 50 per cent of AMI Silica is owned by JMAC Energy Services LLC.
JMAC Resources Limited has agreed to purchase 7,375,000 AMI common shares at a price of $0.20 per share for gross proceeds of $1.47 million in a non-brokered private placement.
Both JMAC Resources and JMAC Energy are controlled by Jon McCreary, a director of Athabasca Minerals.
Upon closing of the acquisition, both AMI and Jon McCreary will hold an indirect 50 per cent interest in the strategic assets.
The strategic assets are comprised of real-estate, an operational sand mine and processing plant capable of up to two million tons production per year, fixed storage, two rail trans-loads, mobile equipment, and active supply chain contracts including rail cars, for a cash consideration of $1.2 million and the assumption of reclamation liabilities of approximately US$6.4 million.
All proceeds from the private placement will be used to fund the cash consideration and closing costs of the acquisition.
JMAC Resources currently has beneficial ownership of 7,930,323 AMI shares, and once the private placement is completed, JMAC Resources’ beneficial ownership will be 15,305,323 common shares, including all issued and outstanding shares.
Athabasca Minerals Inc.’s (AMI) is up 15.9 per cent, trading at $0.26 per share as of 1:56 p.m. EST.