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April 2024

Athabasca Minerals

Athabasca Minerals
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Athabasca Minerals

Exclusive Financial Advisor to Athabasca Minerals on its Sale to Badger Mining as Part of the Court Approved Sales Process Under the Bankruptcy and Insolvency Act in Canada
Energy M&A Advisory Debt Advisory & Restructuring

Canaccord Genuity Acts as Exclusive Financial Advisor to Athabasca Minerals on its Sale to Badger Mining as Part of the Court Approved Sales Process Under the Bankruptcy and Insolvency Act in Canada

Canaccord Genuity is pleased to announce that on April 26, 2024, its client, Athabasca Minerals Inc. (TSX-V:AMI) ("Athabasca" or the "Company"), completed its sale to Badger Mining Corporation (“Badger”) through a court approved sales and investment solicitation process (“SISP”). The transaction was approved by the Alberta Court of King’s Bench (the “Court”) on Friday, April 19, 2024.

The transaction follows the Corporation's filing of the Notice of Intention under the provisions of Part III, Division 1 of the Bankruptcy and Insolvency Act in Canada (“BIA”) and its previously announced and Court approved SISP. As part of the SISP, the Company established a stalking horse bid with one of the Company’s stakeholders. The proposal trustee, along with Canaccord Genuity and the Company’s advisors ultimately held an auction with interested parties that garnered over 160 rounds of bidding.

The transaction was implemented by way of a reverse vesting order under the BIA, pursuant to which: i) the existing common shares of the Company will be exchanged on a 1:1 basis for shares in a newly incorporated entity termed "ResidualCo"; ii) all other existing equity interests in Athabasca will be cancelled for no consideration; iii) certain existing claims and liabilities will be transferred from the Company to ResidualCo; and iv) Badger will be issued new shares from the Company’s treasury and will acquire such shares free and clear of all claims and encumbrances.

Athabasca is a supplier of premium industrial sand with operations in Wisconsin and regional deposits located in Alberta and Northeast BC.  The Company also operates RockChain, a proprietary digital platform for buying, selling, and transporting gravel, sand, and other surface materials.

This transaction highlights Canaccord Genuity’s cross-border capabilities, as well as our complex in-court Debt Advisory & Restructuring and Energy Services expertise.