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.