CALGARY, ALBERTA--(Marketwired - Sept. 23, 2014) -
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.
High North Resources Ltd. (TSX VENTURE:HN) (the "Company" or "High North") is pleased to announce the following recent developments:
New Director
The Company has entered into an agreement with Redhill Resources Corp. (the "Shareholder") to appoint a new director to the board of directors (the "Board") following the Company's upcoming annual and special meeting of shareholders on September 25, 2014 (the "Meeting"). The Shareholder owns or exercises control or discretion of over 10% of the Company's issued and outstanding common shares on a post-conversion beneficial ownership basis.
At the Meeting, shareholders will be asked to elect the Company's six nominees, as set out in the Company's management information circular in respect of the Meeting. The Shareholder has agreed to vote its shares in favor of the Company's nominees at the Meeting.
The Company has agreed that promptly following the Meeting, Mr. Colin Soares will resign from the Board and the Board will appoint Mr. Jamie Carlson to fill the resulting vacancy.
Mr. Soares will continue to lead the High North team in his current capacity as President and Chief Executive Officer, furthering the Company's Montney development efforts in its core area of Girouxville in Northwestern Alberta.
Mr. Carlson has over 20 years of broad based oil and gas development, operations and management expertise. Mr. Carlson's experience includes production engineering and operations, business development, project management and asset evaluation. Mr. Carlson has played a key role in developing several assets from inception to later stage development with resulting values of several million to over a billion dollars. Mr. Carlson is a Professional Engineer and he is a member of the Association of Professional Engineers & Geoscientists of Alberta, the Society of Petroleum Engineers, the Canadian Heavy Oil Association, the Canadian Society of Unconventional Resources, and Cogen Canada.
"High North intends to leverage the operational and reservoir management experience that Mr. Carlson offers. We have a Board with strong energy and industry experience that will support the Company's growth initiatives," stated Colin Soares, President and Chief Executive Officer of the Company.
Commitment Letter
The Company has entered into a commitment letter with Alberta Treasury Branches (the "Lender") and Valleyview Exploration Inc., as guarantor, for a revolving operating credit facility initially capped at $6,000,000 (the "Credit Facility").
Drawdowns under the Credit Facility will be available to finance exploration, development, production and the acquisition of domestic oil and natural gas reserves within the Western Canadian Sedimentary Basin. The Credit Facility may be increased to $10,000,000, contingent on the Company providing the Lender with supportable production history based on a third party engineering evaluation.
Reader Advisory Regarding Forward-Looking Statements
This news release contains certain "forward-looking statements" or "forward-looking information" (collectively referred to herein as "forward-looking statements") within the meaning of applicable securities legislation. Such forward-looking statements include, without limitation, forecasts, estimates, expectations and objectives for future operations that are subject to a number of assumptions, risks and uncertainties, many of which are beyond the control of the Company. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words "expects", "plans", "anticipates", "believes", "intends", "estimates", "projects", "potential" and similar expressions, or that events or conditions "will", "would", "may", "could" or "should" occur or be achieved. This news release contains forward-looking statements, pertaining to, among other things, the following: the growth and development initiatives of the Company, the impact of Mr. Carlson's appointment to the Board, the use of funds drawn down under the Credit Facility and the potential increase in the Credit Facility based on a supportable production history. Statements regarding future growth initiatives are subject to all of the risks and uncertainties normally incident to the exploration for and development and production of oil and gas that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. These risks include, but are not limited to, inflation or lack of availability of goods and services, environmental risks, drilling risks, regulatory changes and certain other known and unknown risks detailed from time to time in High North's public disclosure documents, copies of which are available on High North's SEDAR profile at
www.sedar.com.
Although High North believes that the material factors, expectations and assumptions expressed in such forward-looking statements are reasonable based on information available to it on the date such statements were made, no assurances can be given as to future results, levels of activity and achievements and such statements are not guarantees of future performance. High North's actual results may differ materially from those expressed or implied in forward-looking statements and readers should not place undue importance or reliance on the forward-looking statements. Statements including forward-looking statements are made as of the date they are given and except as required by applicable securities laws, High North disclaims any intention or obligation to publically update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this news release are expressly qualified by this cautionary statement.
Neither the 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.