Whitemud Announces Debt Repayment Plan

Tickers: XTSX:WMK, XTSX:WMK.H
Tags: #Mining

Calgary – TheNewswire – December 30, 2019 – Whitemud Resources Inc. (“Whitemud” and the “Company”) (NEX:WMK.H) is pleased to announce that it has implemented a discretionary debt reduction plan to pay down the principal amount of its outstanding secured loans from surplus cash (the “Plan”). The first payment under the Plan was made on December 30, 2019 in the amount of $500,000 and results from earnings and cash flow generated in 2019 by Midstream Energy Partners, the LPG division of the Company.

The Plan and any payments made toward the Company’s debt under the Plan are discretionary and may be discontinued by the Company at any time in its sole discretion. The Plan also contemplates Whitemud making quarterly principal payments of up to $250,000 against the secured debt, subject at all times to sufficient earnings and cash flow being generated to allow for the debt reductions.

Whitemud’s secured creditors continue to support the Company and have each agreed not to demand repayment of the loans prior to December 31, 2020 without providing prior written notice to the Company and to the TSX Venture Exchange.

Commenting on the Plan the CEO of the Company, Stan Owerko stated that “this Plan is an important achievement for the Company and an indication of the progress being made by the Company’s new LPG division, Midstream Energy Partners. The Company wishes to thank its secured creditors for their continued commitment through 2020 and most likely for a number of years thereafter.”

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.

General Inquiries

Suite 3900, 205 5th Avenue SW

Calgary, Alberta T2P2V7

Telephone: 403-266-1985

Reader Advisory

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 reserves to manage its business affairs and seek out other business opportunities; (ii) Whitemud’s ability to make additional payments under the Plan on a quarterly basis or otherwise; and (iii) the continued support of the Company’s secured creditors going forward. 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.

Neither the TSXV nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Not for distribution to United States Newswire Services or for dissemination in the United States.

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