Athabasca Minerals Inc. acquired a 49.2% interest in a private Alberta corporation that owns the Montney In-Basin, or MIB, frac sand project.

The MIB project consists of over 150,000 contiguous hectares in Alberta, where preliminary testing indicated a quartzose silica sand composed of a size and quality that supports LNG and other hydrocarbon projects.

The company paid around C$1.5 million for a 41.6% stake in the project and issued 1,186,956 shares for an additional 7.6% interest. Athabasca Minerals has the option to purchase the remaining 50.8% in the company within a year following this transaction.

The companies will form a joint project team, and the investment in the private corporation will be used to advance the MIB project starting with resource delineation and validation, according to a Dec. 17 release.

In early 2019, a resource delineation program will include an initial six-hole confirmation drilling program, followed by a 20-hole drill program. Drilling will focus on previously identified highly prospective zones, and on lands with logistical advantages.

The company plans to complete a resource estimate in the second quarter, to be followed by a preliminary economic assessment in the third quarter.