RE:RE:ABM is Very strong.Time to agressive Buy as recomended by Capital TV. Only two days
We started talking about Athabasca Minerals (TSXV:ABM) in our January 11, 2019 live
stream with Capital Ideas Media contributor Fabrice Taylor, who said the gravel and frac
sand company was ready for another big run.
The previous big run for ABM started in 2011 at about $0.25 a share and
finished at about $3 a few years later.
Taylor is one of the largest, if not the largest shareholder of ABM at just under 10%, and
I bought shares in the company last week.
The stock ran higher by as much as 125% since the January show and is still up about
80%.
“If the company can execute on all its plans and keep the share count low, the
stock price will multiply from here.”
Time to “Aggressively Buy”
Athabasca Minerals
Now, we’re keeping track of the Athabasca Minerals story by featuring some Cormark
Securities research in which it says it’s time to “aggressively buy” ABM ahead of its NI
43-101 report expected to be released next month. Those are the reports required in
Canada to disclose information about mineral properties.
In March, Fabrice wrote a Digest cover story update on ABM in which he said:
INVEST LIKE A PRO, WITH THE PROS
TUESDAY, MAY 14, 2019
Page 10
Here are some comments from Cormark after Athabasca Minerals increased its stake
in the Duvernay project, the company’s in-basin frac sand mine in northern Alberta, to
nearly 50% from 16.2%:
The 33.4% increase in ownership came with a $742,000 cash payment and issuance of
1.68 million Athabasca shares to Privco2, the private company that owns the project.
To date, 55 auger holes have been drilled to assess the deposit with 395 samples sent
to AGAT Laboratories and 20 samples sent to Stim-Lab for independent analysis and
testing.
Privco2 has engaged Stantec Consulting to prepare a NI 43-101 report on the Duvernay
Project, expected in mid June.
With most lands over the Duvernay project now tied up by Athabasca and our
expectation that the NI 43-101 report will confirm up to 40 million tonnes of high
quality frac sand in the mine, we also expect Athabasca to move relatively quickly to
further increase its ownership in the project from 49.6% to 100%.
We continue to view the upcoming NI 43-101 report as a material catalyst for the name
based on our expectation that Stantec will…
…confirm the Duvernay project’s size, sand quality and economic
feasibility as a cost competitive alternative to both Northern White sand
out of the U.S. and existing domestic sand supplies.
We also expect the market to soon begin to value the company’s Aggregates Marketing
division following that division’s announcement on April 30th that it had secured a $1.5
million contract with a major industrial operator located in Wood Buffalo Alberta to
supply aggregates.