Athabasca Potash Inc.

Athabasca Potash Inc.

December 06, 2007 19:02 ET

Athabasca Potash Inc. Announces Pricing of Its Initial Public Offering

SASKATOON, SASKATCHEWAN--(Marketwire - Dec. 6, 2007) -


Athabasca Potash Inc. ("Athabasca") announced today that it has entered into an underwriting agreement and has filed its final prospectus with the securities regulatory authorities in each of the provinces and territories of Canada, other than Quebec, in connection with an initial public offering of 10,140,000 common shares of Athabasca at a price of Cdn.$4.25 per share, for gross proceeds of Cdn.$43,095,000. Closing is scheduled to take place on December 13, 2007.

In addition, Athabasca has granted to the underwriters an option to purchase up to an additional 1,521,000 common shares on the same terms as set out above to cover over-allotments, if any, and for market stabilization purposes.

Genuity Capital Markets and National Bank Financial Inc. are co-lead underwriters for the offering. The other members of the syndicate are TD Securities Inc., Wellington West Capital Markets Inc. and Research Capital Corporation.

Athabasca has received conditional approval for the listing of its common shares on the Toronto Stock Exchange under the symbol "API". Listing is subject to Athabasca fulfilling all of the requirements of the Toronto Stock Exchange on or before March 4, 2008, including distribution of the common shares to a minimum number of public shareholders.

This press release does not constitute an offer of the securities described herein in any jurisdiction. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold in the United States absent an exemption from registration.

About Athabasca

Athabasca is a company actively engaged in the exploration of potash projects in Saskatchewan, Canada. Athabasca's objectives are to establish itself as the pre-eminent Canadian public company engaged solely in potash exploration and development, and to provide its shareholders with a unique investment opportunity focused entirely on potash. Athabasca is actively exploring its wholly-owned Burr Project and recently completed a 2D seismic survey of the project as well as five new exploration drill holes. Following completion of its initial public offering, Athabasca will proceed with further seismic surveys, drilling, a scoping study and, if results warrant, a preliminary feasibility study to assess the viability of underground potash mining on the Burr Project. Athabasca also plans to conduct exploration programs over some of the ten exploration permits it holds in Saskatchewan in addition to the Burr Project.

The directors of Athabasca are Mr. Kenneth E. MacNeill, Dawn Zhou, Gary L. Billingsley, James G. Gardiner, Dr. Edward A. Schiller, and John King Burns. Dawn Zhou is also the President and Chief Executive Officer of Athabasca and Gary Billingsley is its Chief Financial Officer.

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