TSX Venture Exchange: IKM-V
CALGARY, Nov. 14, 2018 /CNW/ - Ikkuma Resources Corp.
("Ikkuma" or the "Corporation") is pleased to provide
an update on financing and its recent activity.
Ikkuma is pleased to announce that it has completed a financing
for a $20 million senior secured term
loan (the "Term Loan") with Alberta Investment Management
Corporation ("AIMCo"). The Term Loan bears annual interest
at 9.5% and matures on the earliest of the closing of the
Corporation's proposed business combination (the "Business
Combination") with Pieridae Energy Limited ("Pieridae")
and March 31, 2022. Proceeds from the
Term Loan will be used to repay the currently drawn balance of
$4 million on the Corporation's
existing syndicated credit facility and will allow the Corporation
to proceed with its flow-through drilling program of $12 million to be spent by December 31, 2018.
The focus of the flow-through program will be on drilling
locations associated with the Corporation's Central Alberta foothills asset acquisition
that was completed in the fourth quarter of 2017. Two drilling rigs
have been commissioned for the flow-through drilling program; the
first of which has commenced operations.
As a result of completing the Term Loan with AIMCo and repaying
all outstanding bank debt, the Corporation has terminated its
amended and restated syndicated credit agreement with its banking
syndicate.
As previously announced on July 5,
2018, Ikkuma entered into a purchase and sale agreement to
sell certain midstream assets in the Alberta foothills (the "Infrastructure
Asset Sale") for a total consideration of $23 million. The Infrastructure Asset Sale, which
was under review in conjunction with the Business Combination with
Pieridae, has now been terminated.
"AIMCo continues to provide Ikkuma with exceptional financial
support in this very difficult oil and gas market and allows us to
proceed with our flow-through program as well as positioning Ikkuma
to complete our upcoming business combination with Pieridae." says
Tim de Freitas, Ikkuma's President
and Chief Executive Officer.
A Management Information Circular and Proxy Statement with
respect to the Business Combination is now expected to be mailed to
Ikkuma shareholders on or before November
19, 2018 with a special meeting of shareholders scheduled to
be held on December 17,
2018.
About Ikkuma Resources Corp.
Ikkuma Resources Corp. is a diversified growth-oriented public
oil and gas company listed on the TSX Venture Exchange under the
symbol "IKM", with holdings in both conventional and unconventional
projects in Western Canada. The
Corporation is focused in the Foothills Region of Western Canada with a team that has extensive
experience in the area with the unique skills at successfully
exploiting a complex and potentially prolific play type. Corporate
information can be found at: www.ikkumarescorp.com.
Forward-Looking Statements and Information
This press release contains forward-looking statements and
forward-looking information within the meaning of applicable
securities laws. The use of any of the words "expect",
"anticipate", "continue", "estimate", "objective", "ongoing",
"may", "will", "project", "should", "believe", "plans", "intends"
and similar expressions are intended to identify forward-looking
statements or information. In particular, this press release
contains forward-looking statements and information relating to the
repayment of its bank debt and the termination of its syndicated
credit agreement, the timing of the mailing of the Management
Information Circular and Proxy Statement and the special meeting of
Ikkuma shareholders, proceeding with its flow-through drilling
program of $12 million to be spent by
December 31, 2018 and the completion
of the Business Combination. Although Ikkuma believes that the
expectations and assumptions on which the forward-looking
statements and information are based are reasonable, undue reliance
should not be placed on the forward-looking statements and
information because Ikkuma cannot give any assurance that they will
prove to be correct. The forward-looking statements and
information is based on certain key expectations and assumptions
made by management, including expectations and assumptions
concerning: the satisfaction of all conditions to the closing of
the Infrastructure Asset Sale and on the time frames contemplated;
the Corporation's ability to fund its flow-through obligations,
successful bidding, negotiation of terms and timing of review in
connection with its additional noncore production and
infrastructure assets; prevailing and future commodity prices,
exchange rate, interest rates, inflation rates, applicable royalty
rates and tax laws; future production rates and estimates of
operating costs; performance of existing and future wells; reserves
volumes; anticipated timing and results of capital expenditures in
carrying out planned activities; the state of the economy and the
exploration and production business; the regulatory framework
regarding royalties, taxes and environmental laws; results of
operations; performance; business prospectus and opportunities.
Since forward-looking statements and information address future
events and conditions, by their very nature they involve inherent
risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of
factors and risk. These include but are not limited to the
risks associated with the oil and gas industry in general (e.g.,
operational risks in development, exploration and production;
delays or changes in plans with respect to exploration or
development projects or capital expenditures; the uncertainty of
reserve estimates; the uncertainty of estimates and projections
relating to production, costs and expenses; failure to obtain
necessary regulatory approvals for planned operations; health,
safety and environmental risks; uncertainties resulting from
potential delays or changes in plans with respect to exploration or
development projects or capital expenditures; volatility of
commodity prices, currency exchange rate fluctuations; imprecision
of reserve estimates; and competition from other explorers) as well
as general economic conditions, stock market volatility, and the
ability to access sufficient capital. We caution that the
foregoing list of risks and uncertainties is not exhaustive. The
recovery and reserve estimates contained in this press release are
estimates only and there is no guarantee that the estimated
reserves will be recovered.
In addition, the reader is cautioned that historical results
are not necessarily indicative of future performance. The
forward-looking statements and information contained in this press
release are made as of the date hereof and Ikkuma undertakes no
obligation to update publicly or revise any forward-looking
statement or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
SOURCE Ikkuma Resources Corp.