TORONTO, April 05, 2019 (GLOBE NEWSWIRE) -- Inspiration Mining Corporation (the “Corporation”) (CSE: ISM) is pleased to announce that Silk Energy AS (“Silk”) entered into an investment agreement (the “Agreement”) with Global Emerging Markets (“GEM”), an investment group based in Luxembourg. GEM (www.gemny.com) was founded in 1991 and is a USD $3.4 billion investment group having completed 375 transactions in 75 countries. The firm is an alternative investment group that manages a diverse set of investment vehicles across the world.
The Agreement is for an aggregate amount of $50 million (the “Facility”). The Agreement expires on the earlier of (i) three (3) years or (ii) on GEM subscribing for securities in the capital of Silk with an aggregate value of $50 million. Pursuant to the terms of the Agreement, GEM is obliged, upon the submission of a draw down notice by Silk, to purchase securities in the capital of Silk. GEM is restricted from purchasing securities in the capital of Silk if such purchase will result in GEM holding 10% or more of the issued and outstanding securities in the capital of Silk.
Silk is able draw down on the Facility after ten (10) consecutive trading days after the completion of the acquisition of Silk by the Corporation. After the first draw down, Silk will be able to continue to draw down on the Facility every fifteen (15) business days, subject to the share ownership restriction placed on GEM. In addition, Silk may use the Agreement as security, with the consent of GEM, in order to secure additional debt facilities.
In addition, Silk is required to pay GEM a commitment fee of $1 million (the “Fee”), which is 2% of the aggregate amount of the Facility. The Fee is payable in either cash and/or securities in the capital of Silk. In addition to the Fee, GEM is entitled to such number of warrants (the “Warrants”) that equal to 10% of the securities in the capital of Silk on a fully diluted basis.
Upon the closing of the proposed acquisition of Silk by the Corporation, the obligations of Silk under the Agreement will be assigned to the Corporation. As such, the requirements to issue the Warrants and/or the shares under the Agreement will be assigned to the Corporation. The issuance price of the shares and the exercise price of the Warrants will be done in accordance with the rules and regulations of the CSE.
“The GEM Facility will provide Silk with access to the necessary capital to continue the exploration and development on its Ustyurt licenses in Kazakhstan,” said Steve Kappella, Chief Executive of Silk. "With this agreement, Silk is on its way to funding its exploration program and will be drilling three shallow exploration wells in 2019 and a further deeper well in 2020.”
For additional information on the acquisition of Silk, please refer to the Corporation’s press releases of August 14th 2018, January 1st 2019 and March 5th 2019.
About Silk Energy AS
Silk is a new oil Exploration and Production Company with a proven experienced management team, operating in Kazakhstan in an area known for giant oilfields. It will list on the Canadian Securities Exchange following an AGM on the 17th April to formalize the approval of a Reverse Takeover by shell company Inspiration Mining. The Company has 50% of the Ustyurt lease, covering 6,500 square kilometers of prime exploration ground adjacent to the Caspian Sea in partnership with KazMunaiGas NC the State Oil Company in Kazakhstan. The license area is less than 100 kilometers from Kashagan and Tengiz, two of the largest oilfields in the world with reserves of over 22 billion barrels.
For further information, please contact Randy Miller, Chief Executive Officer of the Corporation, at647.256.1973, www.inspirationmining.com
The CSE has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
This press release contains forward-looking statements based on assumptions, uncertainties and management’s best estimates of future events. Actual results may differ materially from those currently anticipated. Investors are cautioned that such forward-looking statements involve risks and uncertainties. Important factors that could cause actual results to differ materially from those expressed or implied by such forward-looking statements are detailed from time to time in the Corporation’s periodic reports filed with the Ontario Securities Commission and other regulatory authorities. The Corporation has no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.