Whitemud Provides Operational and Debt Update
Calgary - TheNewswire - March 24, 2020 - Whitemud Resources Inc. ("Whitemud" and the "Company") (NEX - "WMK.H") is pleased to announce that its LPG division, Midstream Energy Partners, has secured new LPG sales contracts for the upcoming contract year commencing April 1, 2020 and ending March 31, 2021. The supply for these contracts was also established. Together these contracts are anticipated to provide sufficient cash flow to support operations through Q1 2021 and allow the Company to maintain its discretionary debt reduction plan announced on December 30, 2019 (the "Debt Reduction Plan").
Based on the new purchase and supply contracts and current cash reserves, the Company has determined to reduce the principal on its outstanding secured loans in accordance with the Debt Reduction Plan by the amount of $500,000.
Commenting on these developments the CEO of the Company, Stan Owerko stated that "the execution of profitable supply and sales contracts by the LPG division during challenging market conditions is an important achievement for the Company and supports an increase in the debt reduction during 2020".
About Whitemud Resources Inc.
Whitemud is a Canadian-based corporation engaged in the business of commodity marketing and logistics through Midstream Energy Partners, a division of Whitemud Resources Inc. formed in 2015.
Whitemud also holds mineral rights to exploit a large kaolin deposit in southern Saskatchewan, together with a processing facility located on the property. Whitemud's product, Whitemud (MK) is a cement-grade metakaolin that enhances the performance of cement for oil and gas wells and construction applications. The Company uses a process that minimizes environmental impact.
For further information, please contact:
Whitemud Resources Inc.
Suite 3900, 205 5th Avenue SW
Calgary, Alberta T2P2V7
This news release contains forward-looking statements, within the meaning of applicable securities legislation, concerning Whitemud's business and affairs. In certain cases, forward-looking statements can be identified by the use of words such as ''attempts'', ''intends'', "continues" or variations of such words and phrases or state that certain actions, events or results ''may'', ''could'', ''would'', ''might'' or ''will be taken'', ''occur'' or ''be achieved''. These statements involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking statements. Although Whitemud believes these statements to be reasonable, no assurance can be given that these expectations will prove to be correct and such forward-looking statements included in this news release should not be unduly relied upon. Such statements include statements with respect to (i) Whitemud having sufficient cash flow to support operations through Q1 2021; and (ii) Whitemud's ability to maintain its Debt Reduction Plan. Actual results could differ materially from those anticipated in these forward-looking statements as a result of prevailing economic conditions, and other factors, many of which are beyond the control of Whitemud. The forward-looking statements contained in this news release represent Whitemud's expectations as of the date hereof, and are subject to change after such date. Whitemud disclaims any intention or obligation to update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as may be required by applicable securities regulations.
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