TSX Venture Exchange: IKM-V
CALGARY, July 5, 2018 /CNW/ – Ikkuma Resources Corp. (TSXV: IKM) (“Ikkuma” or the “Corporation“) is pleased to announce that it has entered into a purchase and sale agreement (the “Purchase and Sale Agreement“) on July 4, 2018 to sell certain midstream assets in the Alberta foothills (the “Infrastructure Asset Sale“) to an undisclosed purchaser for a total cash consideration of $23.0 million, subject to customary adjustments. The Infrastructure Asset Sale is subject to standard industry closing conditions, as well as approval from the purchaser’s Board of Directors and due diligence reviews.
The Infrastructure Asset Sale represents the initial stage of the Corporation’s plan to divest of non-core natural gas assets. As previously announced on May 15, 2018, Ikkuma entered into a non-binding letter of intent to sell certain midstream assets for a purchase price of $30.0 million. A portion of the proposed midstream asset sale outlined in the letter of intent, representing $7.0 million of consideration, has been retained by Ikkuma and will be included in the next stage of the Corporation’s natural gas divestiture program through a public process with GMP FirstEnergy. Anticipated bids are expected to be reviewed by the Corporation in the next 60 days.
Proceeds from the Infrastructure Asset Sale will be used to reduce debt and to fund the Corporation’s $12 million flow-through obligations.
The Infrastructure Asset Sale is expected to close on or before August 31, 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.