Athabasca to sell property around Obed facility in Canada

Athabasca Minerals Inc. (TSX VENTURE:ABM) announced April 18 the signing of a definitive agreement for the sale of Athabasca’s rights, title and interests surrounding three leases bordering the Obed Transloading Facility to Wayfinder Corp. for a purchase price of C$800,000.

Athabasca has received a C$200,000 non-refundable deposit related to this agreement, with a final closing expected on or before June 30, 2016.

Athabasca previously announced that it had entered into a purchase agreement with Coal Valley Resources Inc. (CVRI), a subsidiary of Westmoreland Coal, on May 12, 2015, to purchase the Obed Facility. As part of the this new agreement, Athabasca has transferred its rights of first refusal on the purchase of the Obed facility to Wayfinder, which has just entered into a separate agreement with Westmoreland Coal for the purchase of the Obed Facility.

As part of the sale agreement, Athabasca maintains the rights to:

  • Construct, operate and maintain a drying facility on lands adjacent to the Obed facility.
  • Work with Wayfinder in utilizing the existing rail infrastructure to sell certain aggregates.
  • Act as a domestic supplier of sand, gravel, borrow or aggregates material to Wayfinder for Wayfinder’s operations at the Obed site and adjacent leases.
  • Act as a third party contractor to Wayfinder for any road maintenance work, civil earthwork or site development work surrounding Wayfinder’s operations at the Obed Facility and adjacent leases.

Athabasca will maintain the ability to distribute frac sand from the Firebag Frac Sand Project via the Obed Facility.

U.S.-based Westmoreland Coal is Canada’s largest producer of steam coal for power generation.

About Barry Cassell 20414 Articles
Barry Cassell is Chief Analyst for GenerationHub covering coal and emission controls issues, projects and policy. He has covered the coal and power generation industry for more than 24 years, beginning in November 2011 at GenerationHub and prior to that as editor of SNL Energy’s Coal Report. He was formerly with Coal Outlook for 15 years as the publication’s editor and contributing writer, and prior to that he was editor of Coal & Synfuels Technology and associate editor of The Energy Report. He has a bachelor’s degree from Central Michigan University.