Highwood Oil Firm Ltd. Pronounces Completion of Profitable Divestiture Program, Acquisition of Over 320,000 Acres of Lithium Licenses and Strategic Transformation into Asset Administration Firm

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CALGARY, AB, March 25, 2021 / CNW / – Highwood Oil Firm Ltd. (TSXV: HOCL) (“Highwood” or the “Firm”) is happy to offer the updates under.

Operational replace

As beforehand introduced on November 13, 2020, Highwood has accomplished the divestiture of its Crimson Earth (“Crimson Earth”) property and associated decommissioning legal responsibility of roughly $ 35 million, for the proceeds from the sale of $ 2 million in money (the “sale of the purple earth”).

The sale of Crimson Earth was entrusted to Blue Sky Sources Ltd., Alberta personal oil and fuel exploration and manufacturing firm. The Alberta Power Regulator has accepted all license transfers related to the sale of Crimson Earth. Highwood has been engaged by the purchaser to offer transition companies referring to the property transferred by way of Could 2021. A hit fee of 1.5% was paid to Nationwide Financial institution Monetary for its function as monetary advisor in reference to the Crimson Earth sale.

Highwood’s largest supply of money circulation continues to be its 200 km Wabasca crude oil transportation pipeline, along with roughly 125 barrels / day of oil manufacturing. Professional-forma of the Crimson Earth sale, Highwood’s present web debt is roughly $ 2.5 million on a compliant working set up of $ 10 million, which matures Could 31, 2021.

Acquisition of over 320,000 acres of mining permits for lithium analysis

Highwood is happy to announce that it has obtained permits for an space of ​​over 320,000 acres Alberta and British Columbia by way of Metallic and Industrial Mineral Permits which it considers potential for the extraction of lithium. Highwood is presently evaluating a number of potential options with respect to property, together with bringing in a three way partnership accomplice and buying or growing direct mining know-how for lithium. Highwood has retained Echelon Wealth Companions Inc. as an advisor to assist decide the most effective means to fund the continued growth of its expanded funding mandate.

Since 2017, Highwood and its major shareholder have been buying rights to lithium and evaluating lithium mining applied sciences. The corporate is presently awaiting the concentrations of lithium and different underground metals from the outcomes of the produced water analyzes and is inspired by the compensation of the lithium concentrations and the deliverability of lithium brine from associated wells.

If lithium concentrations meet or exceed expectations, Highwood plans to report in accordance with the provisions of Nationwide Instrument 43-101 – Disclosure Requirements for Mining Tasks.

Strategic transformation into an asset administration firm

Together with the aforementioned divestments and acquisitions, Highwood plans to instantly transition to an asset administration firm centered on vitality, vitality transition and associated applied sciences and to rebrand itself as “Highwood Asset Administration”. Over the previous 5 years, Highwood has evaluated numerous corporations within the area of vitality, vitality transition and clear applied sciences.

The corporate has acquired acceptance by TSXV of the sale of Crimson Earth and intends to hunt TSXV and shareholder approval for its proposed new title change and transition to Highwood Asset Administration. Further info might be offered as soon as the circumstances for the change of firm have been finalized.

Oil and fuel measurements

Readers ought to seek the advice of the “Chosen Technical Phrases” within the Annual Info Kind filed on April 30, 2020 for the definition of sure oil and fuel phrases.

Warnings

Neither the TSX Enterprise Alternate nor its Regulation Providers Supplier (as that time period is outlined within the insurance policies of the Alternate) accepts accountability for the adequacy or accuracy of this press launch.

This press launch incorporates forward-looking statements referring to the long run enterprise of the corporate and different statements that aren’t historic details. Ahead-looking statements are sometimes recognized by phrases similar to “anticipate”, “consider”, “proceed”, “may”, “estimate”, “count on”, “foresee”, “intend”, “could “,” Goal “,” in progress “,” prospects “,” potential “,” mission “,” plan “,” ought to “,” goal “,” would “,” will “ or related phrases suggesting future outcomes, occasions or efficiency. These statements contain dangers, assumptions, uncertainties and different identified and unknown elements which will trigger precise outcomes or occasions to vary materially from these anticipated in these forward-looking statements. Though the corporate believes that there’s a affordable foundation for the expectations and assumptions mirrored in forward-looking statements, one mustn’t place undue reliance on forward-looking statements as a result of the corporate can provide no assurance that they’ll show to be right. . The forward-looking statements contained on this press launch converse solely as of the date hereof and are expressly certified by this cautionary assertion. Particularly, this press launch incorporates forward-looking statements referring to, however not restricted to: its transition from an asset administration firm, in addition to the lithium property and future plans relating thereto.

All statements apart from statements of historic reality included on this press launch, together with, with out limitation, statements concerning the long run plans and targets of the Firm, are forward-looking statements that contain dangers and uncertainties. There may be no assurance that such statements will show to be correct and precise outcomes and future occasions may differ materially from these anticipated in such statements. Important elements that might trigger precise outcomes to vary materially from the Firm’s expectations embody the dangers detailed every so often in paperwork filed by the Firm with securities regulators.

The reader is cautioned that the assumptions used within the preparation of any forward-looking info could show to be incorrect. Occasions or circumstances could trigger precise outcomes to vary materially from these anticipated, as a result of quite a few identified and unknown dangers, uncertainties and different elements, lots of that are past the management of the Firm and a few of which may be discovered under. underneath the heading “Danger Elements” within the Firm’s Annual Info Kind. Readers are cautioned to not place undue reliance on forward-looking info. Such info, whereas thought of affordable by administration on the time of preparation, could also be show to be incorrect and precise outcomes could differ materially from these anticipated. Ahead-looking statements contained on this press launch are expressly certified by this cautionary assertion. Ahead-looking statements contained on this press launch are made as of the date of this press launch and the corporate will publicly replace or revise any of the forward-looking statements included, as expressly required by Canadian securities laws.

SOURCE Highwood Oil Firm Ltd.

For additional info: About Highwood, please contact: Greg Macdonald, President and CEO, 587.393.0862, [email protected]

Associated hyperlinks

https://highwoodoil.com/

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