Wedgemount Resources Announces Closing of Willowbend Permian Basin Asset Acquisition
Vancouver, BC – April 3, 2023 – Wedgemount Resources Corp. (CSE: WDGY)(OTCQB: WDGRF) (“Wedgemount” or the “Company”), is pleased to announce that it has closed its acquisition of certain West Texas, Permian Basin, oil and gas production assets know as the Willowbend assets (the “Assets”) (announced October 27, 2022 and December 19, 2022). Having completed payments totalling US$1,500,000, Wedgemount, through its wholly owned Texas subsidiary Wedgemount Texas Corp. (“WTC”), has assumed a 100% working interest, operatorship and title to the Assets, subject to underlying royalties averaging 19%. WTC will be credited with an amount equal to the net oil and gas revenue from the Assets, for the period commencing January 1, 2023 through March 31, 2023, the date of closing of the acquisition (the “Interim Period”), such amount will be reconciled via a settlement statement rendered within 60-days of closing, on or before May 30, 2023. During the Interim Period, the vendor of the Assets conducted operations at the direction of WTC and WTC remained responsible for property as well as oil and gas production taxes.
The Company also announces that it has entered into a loan agreement (the “Agreement”) pursuant to which it was loaned CAD$450,000, bearing interest at a rate of fifteen percent (15%) per annum, payable by the Company monthly on the last business day of every month for the first twenty-two (22) months from the date of initial advance, with the first payment commencing on June 30, 2023, and thereafter at the rate of eighteen percent (18%) per annum (the “Loan”). The Company will make payments on account of principal on the Loan commencing June 30, 2023 at the rate of CAD$20,000 per month plus an amount equal to 25% of net cash flows over USD$200,000. The Loan will mature, and all outstanding principal shall become due and payable, on February 28, 2025. The Company may repay the Loan at any time on 10- days’ notice without penalty. The Company intends to repay the Loan with cash received from cash flows. The Loan is guaranteed by WTC and a general security interest over the assets of WTC.
About Wedgemount Resources Corp.
Wedgemount Resources is a junior natural resources company focused on maximizing shareholder value through the acquisition, discovery and advancement of natural resource projects in North America.
On behalf of the Board of Directors,
WEDGEMOUNT RESOURCES CORP.
Mark Vanry, President and CEO
For more information, please contact the Company at:
Telephone: (604) 343-4743
This news release may contain statements which constitute “forward-looking information”, including statements regarding the plans, intentions, beliefs and current expectations of the Company, its directors, or its officers with respect to the future business activities of the Company. The words “may”, “would”, “could”, “will”, “intend”, “plan”, “anticipate”, “believe”, “estimate”, “expect” and similar expressions, as they relate to the Company, or its management, are intended to identify such forward-looking statements. Forward looking statements made in this news release include the anticipated completion of the acquisition and the proposed timing thereof, the anticipated benefits of the acquisition, the potential for gas production and production from additional zones on the Assets, and potential additional acquisition opportunities in the area of the Assets and the proposed use of the proceeds of the Offering. Investors are cautioned that any such forward-looking statements are not guarantees of future business activities and involve risks and uncertainties, and that the Company’s future business activities may differ materially from those in the forward-looking statements as a result of various factors, including, but not limited to, availability of funds, personnel and other resources necessary to conduct exploration or development programs,