Hillcrest Signs Convertible Loan Term Sheet

Source Company Press Release
Company Hillcrest Energy Technologies Ltd.
Tags Corporate: Overview/Strategy, Country: Canada, M&A: Asset Deal, Deals, Upstream: Upstream News
Date August 06, 2020

 Hillcrest Petroleum Ltd. (the "Company" or "Hillcrest"), (TSXV:HRH), (OTC:HLRTF), is pleased to announce the Company has signed a term sheet with a New York based firm for a CDN $5,000,000 convertible loan. Hillcrest announced July 14th that The Company was evaluating a funding proposal which would allow it to potentially access up to $5 million for West Hazel field development activities and the funding was conditional on Hillcrest purchasing the JV partners working interest in the asset. Hillcrest further announced July 30th they had an agreement in principal for the acquisition of the JV partner's interests in exchange for three million (3,000,000) Hillcrest common shares, representing a CDN $150,000 value at the time of the announcement. The agreement in principle met the conditions of the lender.

Details of the term sheet include:

  • - $500,000 first draw

    - 1St draw of $500,000 to be paid within 14 months of closing.

    - No payments for the first 4 months after closing

    - Further draws are available upon 75% of the first draw being paid or earlier if both sides mutually agree in writing.

    - Fees and associated costs will be detailed in the formal agreement

    - Hillcrest has advised the lender that the first funding amount of $500,000.00 will be used to drill a short lateral well on the West Hazel site

"Hillcrest's West Hazel development plans have potentially taken a substantial step forward with this funding." states Don Currie, Hillcrest CEO "The impending funding allows the Company to proceed with field development activities to increase production and revenues and maximize reserves recovery. We have previously stated estimates that the field production could be increased to more than 500 barrels per day and will initiate the development when the funding agreements are complete. The Company will update our shareholders as expansion plans of the field materialize."

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