TSX Venture Exchange: IKM-V
CALGARY, May 15, 2018 /CNW/ – Ikkuma Resources Corp. (“Ikkuma” or the “Corporation“) is pleased to announce the initial stage of its previously disclosed plan to divest non-core infrastructure assets.
Ikkuma has entered into a non-binding letter of intent to sell certain midstream assets for a purchase price of $30 million, subject to customary adjustments, pending execution of a definitive purchase and sale agreement (the “Proposed Disposition“). A purchase and sale agreement is expected to be executed in the next 30 days. KES 7 Capital Inc. is acting as a financial advisor to the Corporation in conjunction with the Proposed Disposition. The Proposed Disposition is subject to receipt of all board and regulatory approvals, including approval by the TSX Venture Exchange.
Proceeds from the Proposed Disposition will be used to reduce debt and to fund the Corporation’s $12 million flow-through obligations. The focus of the flow-through program will be on the Corporation’s recently acquired Central Alberta foothills assets where the team at Ikkuma has had a significant amount of success.
In addition to the Proposed Disposition, Ikkuma is pleased to announce that it has engaged GMP FirstEnergy to sell non-core production and additional infrastructure assets through a public process. As previously disclosed in the Corporation’s April 3, 2018 press release, Ikkuma estimates the replacement value of its infrastructure at approximately $600 million.
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 Company 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.