Athabasca Announces Term Financing
August 14, 2008
Edmonton, Alberta - August 14, 2008 - Athabasca Minerals Inc. (TSX Venture: ABM) (the "Company") is pleased to announce that it has obtained Cdn $9 million term financing (the "Credit Facility") from the Bank of Montreal (the "Lender"). The purpose and business reasons for the Credit Facility is to assist the Company with completing the acquisition of Aggregates Management Inc. ("AMI") as previously announced on May 1, 2008.
Subject to the Lender's right to demand payment at any time, the Credit Facility is to be repaid in 60 equal monthly payments, plus interest (interest only due for the first two months). Interest is payable on the Credit Facility at a floating rate of prime plus 1.50%.
Athabasca has also secured from the Lender a commercial letter of credit (the "Letter of Credit") in the amount of $603,000 in favour of the Province of Alberta to assist the Company with the reclamation of its Susan Lake Pit. The Company will pay a yearly fee of 1.75%, charged quarterly, for the Letter of Credit.
The Credit Facility and Letter of Credit will be secured by a corporate guarantee and general security agreements with each of Athabasca and AMI.
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.
For further information, please contact Dom Kriangkum, P. Eng., President and Chief Executive Officer of Athabasca Minerals Inc. at E-mail: moc.slarenimacsabahta@ofni or Dean Stuart, Boardmarker Group, at (403) 517-2270. E-mail: ten.rekramdraob@naed.
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release.
This new 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 Inc. The forward-looking statements or information contained in this news release are made as of the date hereof and Athabasca Minerals Inc. 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.