CALGARY, ALBERTA–(Marketwired – Feb. 17, 2017) –
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US Oil Sands Inc. (“US Oil Sands” or the “Company“) (TSX VENTURE:USO), an innovator of oil extraction technologies, announces that it has reached agreement with various service providers to reinitiate work on the PR Spring Project (the “Project“) through the deferral of payments and/or the issuance of shares on outstanding accounts.
“We are pleased that the Company continues to have the support of the contractors who have diligently contributed to the construction and commissioning of the Project,” said Cameron Todd, CEO of US Oil Sands. “As the Company continues to carefully manage its most recent capital infusion, the ability to defer or settle its accounts payable liabilities through the issuance of shares provides the Company with additional operational and financial flexibility. We can now look forward to completing commissioning procedures, beginning operations, and achieving our goal of making first-oil early in 2017 and profitably demonstrating the Company’s commercial technology.”
SHARES FOR DEBT AGREEMENTS
The Company has entered into agreements with four of its service-provider creditors to issue 793,857 common shares in the capital of the Company (“Common Shares”) at a deemed price of C$1.15 per Common Share in settlement of an aggregate of C$912,934 in debt.
The issuance of the Common Shares to creditors as described herein is subject to acceptance of the TSX Venture Exchange.
The Company anticipates entering into further agreements with service-provider creditors.
PR SPRING PROJECT UPDATE
The Project commissioning recommenced in early February as employees and contractors were brought back to site in a staged basis allowing for a coordinated and safe return-to-operations.
The Company expects to complete commissioning and initiate start-up operations over the next 8 – 10 weeks. Following successful initial operations, the Company anticipates ramping up to capacity.
ABOUT US OIL SANDS INC.
US Oil Sands is engaged in the exploration and development of oil sands properties and, through its wholly owned United States subsidiary US Oil Sands (Utah) Inc., has a 100% interest in bitumen leases covering 32,005 acres of land in Utah’s Uinta Basin. The Company plans to develop its oil sands properties using its proprietary extraction process which uses a bio-solvent to extract bitumen from oil sands without the need for tailings ponds. The Company is in the pre-production stage, anticipating the commencement of bitumen production and sales once it has completed commissioning and start-up of the Project.