Athabasca Minerals, based in Edmonton, Alberta, has bought two gravel pits in the Wood Buffalo region of Alberta.
The gravel pits include KM248 and Cowpar gravel properties and were acquired for a purchase price of $445,000 (Cdn $600,000).
Athabasca has operated the KM248 and Cowpar gravel pits since 2014, under an agreement with DeneCo Aggregates whereby Athabasca paid a royalty to DeneCo based on aggregate deliveries from the two gravel pits.
With the purchase of the gravel pits, Athabasca will no longer be subject to royalty payments to DeneCo, and will be fully responsible for the marketing and sales to customers in the region.
The KM248 property is located approximately 60km southeast of Fort McMurray adjacent to Highway 881 and has year round access. As of September 30, 2016 there is an inventory of crushed aggregate available for immediate sale. The Cowpar property is located approximately 95km southeast of Fort McMurray.
“This agreement demonstrates Athabasca’s ability to successfully do business with a First Nation company,” Bill Woods, chief financial officer, Athabasca said.
“The acquisition of these pits is strategically significant for Athabasca in this region. The Corporation is aggressively looking for other sand and gravel pit acquisition opportunities,” he said.