ATB Executes High North Resources Facility
High North has executed a non-binding, indicative term sheet dated August 26, 2014, with ATB Financial, which provides for the grant to the company of a reserve-based revolving production loan facility of up to $10 million.
The revolver is initially capped at $6 million and may be increased to $10 million, subject to an evaluation of High North’s material hydrocarbon assets, effective September 30, 2014.
The revolving facility will be secured by a general security agreement conveying a first floating charge over all real and personal property and after acquired assets and an undertaking to grant, at the request of ATB, a first fixed charge on all property interests.
The company intends to use advances from the revolving facility for general corporate purposes related to the exploration, development, production and acquisition of domestic oil and natural gas reserves within the Western Canadian Sedimentary Basin, inclusive of the previously announced upcoming drilling program.