Athabasca Minerals Inc. Granted Stay Extension and Replacement Interim Financing

Press Release

Edmonton, Alberta–( – March 11, 2024) – Athabasca Minerals Inc. (TSXV: AMI) (together with its subsidiaries, collectively, “Athabasca” or the “Corporation”) announce that it has obtained an order (the “Order”) from the Court of King’s Bench of Alberta (the “Court”) on March 8, 2024 in support of its restructuring efforts under the Notice of Intention to Make a Proposal (the “NOI”). This Order extends the current stay period to April 22, 2024 (the “Stay Extension”), amending and restating the stay extension announced on January 26, 2024. The Order also authorizes the Corporation to obtain new interim financing from Badger Mining Corporation (“Badger”) in the amount of CAD $5,300,000 (the “Second Interim Financing Facility”).

As previously announced on December 15, 2023, Athabasca commenced a court-approved sale and investment solicitation process (the “SISP”) in respect of Athabasca’s business and property. As part of that process, JMAC Energy Services LLC (“JMAC”) was authorized to act as interim lender and advanced the Corporation CAD $2,850,000 (the “First Interim Financing Facility”). The maturity date of the First Interim Financing Facility is March 12, 2024 (the “Maturity Date”). The Corporation anticipated repaying the First Interim Financing Facility through sale proceeds generated from a transaction emanating from the SISP. The Corporation has entered into a transaction agreement with Badger (the “Transaction”) that would repay the First Interim Financing Facility in full as previously announced on February 15, 2024, however, it is not anticipated that the Transaction will close prior to the Maturity Date. The Second Interim Financing Facility is required to repay the First Interim Financing Facility in full prior to the Maturity Date, and to fund ongoing operational expenses, including professional fees, until the Corporation can close the Transaction.

The Corporation and Badger have been working diligently to satisfy the conditions of closing and have also negotiated a brief one-month extension to the outside date under the Subscription Agreement from March 30, 2024 to April 30, 2024 (the “Outside Date”).

Athabasca remains committed to the SISP and is continuing to work closely with its interested stakeholders and professional advisors to obtain Court approval of the Transaction prior to the Outside Date to ensure the best possible outcome is realized for all stakeholders. Copies of all Court filed materials are available at: www.ksvadvisory.com/experience/case/athabasca-minerals.

About Athabasca Minerals Inc.

Athabasca is an integrated industrial minerals company focused on the production and delivery of frac sand to Canada and the United States. Athabasca also operates aggregate operations in Western Canada and maintains the largest platform for buying, selling, and transporting of aggregates through its 100% owned technology platform, AMI RockChain.

For further information, please contact:
Cheryl Grue, Director, Corporate Affairs
Tel: 587-392-5862 / Email: cheryl.grue@athabascaminerals.com

IBF4