CALGARY, May 25, 2017 /CNW/ - Ikkuma Resources
Corp. ("Ikkuma" or the "Corporation") (TSXV:
IKM) announces that it has completed a financing with Alberta
Investment Management Corporation ("AIMCo"), on behalf of
certain of its clients, providing for a $45.0 million second lien senior secured term
loan (the "Second Lien Facility"), which bears annual
interest at 7.25% and matures on March
31, 2022. The proceeds from the Second Lien Facility
were made available in a single draw and amounts borrowed under the
Second Lien Facility that are repaid or prepaid will not be
available for re-borrowing. In addition, for no additional
consideration, Ikkuma has issued warrants ("Warrants") to
purchase common shares of the Corporation ("Common Shares")
to AIMCo, entitling AIMCo to acquire up to 6.75 million Common
Shares for a period of three years, at an exercise price of
$0.86 per Common Share, equal to a
40% premium to the volume weighted average trading price of the
Common Shares for the 20 trading day period prior to the date of
issue of the Warrants.
In conjunction with the approvals for the Second Lien Facility,
the Corporation entered into an Amended and Restated Credit
Agreement with respect to its existing credit facilities (the
"Credit Facilities") with its banking syndicate, comprised
of The Toronto-Dominion Bank and Alberta Treasury Branches as joint
bookrunners, whereby the borrowing base was re-determined at
$25.0 million and the maturity date
was extended to May 31, 2019. A
financial covenant was added, being a debt to EBITDA ratio not to
exceed 4.0x on a rolling four quarter basis, beginning on
June 30, 2017. The Second Lien
Facility is subject to the same financial covenant.
Net proceeds from the Second Lien Facility will be used to pay
down all outstanding indebtedness under the Credit Facilities
resulting in approximately $10
million of cash deposits and an undrawn $25 million Credit Facilities. These
financing transactions significantly strengthen Ikkuma's liquidity
and secures funding for the Corporation to continue developing its
Cardium oil play. Ikkuma will provide further guidance on its
2017 capital program in its upcoming first quarter press
release.
Desjardins Securities Inc. acted as financial advisor to the
Corporation with respect to the Second Lien Facility and was paid a
fee equal to 1% of the principal amount of the Second Lien
Facility.
About Alberta Investment Management Corporation
(AIMCo)
AIMCo is one of Canada's
largest and most diversified institutional investment managers with
more than CDN$90 billion of assets
under management. AIMCo was established on January 1, 2008 with a mandate to provide
superior long-term investment results for its clients. AIMCo
operates at arms-length from the Government of Alberta and invests globally on behalf of 31
pension, endowment and government funds in the Province of
Alberta.
About Ikkuma
Ikkuma Resources Corp. is a diversified junior public oil and
gas company listed on the TSXV under the symbol "IKM", with
holdings in both conventional and unconventional projects in
Western Canada. The technical team has worked together for
over a decade in the Foothills Region of Western Canada,
through two successful, publicly traded companies. The unique
skills and repeat success at exploiting a complex, potentially
prolific play type are fundamental ingredients for a successful
growth-oriented company in Western Canada. Corporate
information can be found at: www.ikkumarescorp.com.
Forward-Looking Statements and Information and Cautionary
Statements
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. Forward-looking statements and
information in this press release includes, but is not limited to,
the use of net proceeds from the Second Lien Facility and funding
for the development of the Corporation's Cardium oil play.
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. 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 risks. 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
inability to meet expectations in respect of the amount or timing
of 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 forward-looking statements contained in this document are
made as of the date hereof and Ikkuma does not undertake any
obligation to update publicly or revise any forward-looking
statements or information, whether as a result of new information,
future events or otherwise, unless so required by applicable
securities laws. Please refer to Ikkuma's Annual Information Form
dated April 19, 2017 for additional
risk factors relating to Ikkuma which is available for viewing on
www.sedar.com.
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.