Greenhawk Announces Strategic Restructuring of Debenture
Greenhawk Resources Inc. (“Greenhawk” or the "Company") (CSE: GRHK) has recently taken a significant step forward in enhancing its financial standing. The Company is excited to reveal the amendment and restructuring of a $2,700,000 convertible debenture held with CG International Petroleum Corp. (“CGIP"). This agreement sets the stage for a secured debenture facility (the “New Credit Facility”) that CGIP has negotiated with a third-party lender, enabling crucial financing for the exploration and testing of oil and gas wells in its Doba Project.
Understanding the Agreement
The restructuring initiative centers on several key terms that Greenhawk has successfully negotiated. Initially, the Company has already collected $100,000 upon signing and anticipates an additional $160,000. This figure will be provided within six months or immediately upon closing the New Credit Facility, with funds allocated directly toward the existing 2024 Debenture principal.
Details of the Restructured Debenture
Significantly, the current 2024 Debenture will be canceled upon completion of these financial arrangements. The outstanding principal and accrued interest will be transferred to a new loan structured on similar terms alongside the New Credit Facility. Notably, the New Credit Facility is set to accrue interest at an annual rate of 15% and will have a repayment deadline two years from issuance. An important feature of this agreement is a six-month initial grace period for payments.
Security and Subordination Aspects
For investors, the New Credit Facility will be secured against specific CGIP properties, including those associated with the Doba Project. However, it will remain subordinate to any senior lenders involved with CGIP, underscoring a well-structured risk profile for stakeholders.
Impact on the Doba Project
As part of the restructuring, Greenhawk is allowing its previously held option for a farm-in agreement concerning the Doba Project to lapse, indicating a strategic pivot towards focusing on enhancing current operations rather than expanding into additional ventures at this time.
About the Doba Project
The Doba Project represents a pivotal development in CGIP’s portfolio within the oil and gas landscape. With the backing of the New Credit Facility, significant resources can now be channeled into developing and optimizing oil wells in the basin, which is considered rich in potential.
About Greenhawk Resources Inc.
As a forward-thinking Canadian resources exploration and development firm, Greenhawk owns a complete legal interest in mineral exploration licenses, most notably the Storø Gold Project in Greenland. This commitment to responsible resource extraction is reflected in the Company’s vision to contribute positively to the sectors in which it operates.
Looking Ahead
Greenhawk's recent decisions and emerging financial strategies indicate a bright outlook for continued growth and opportunity within the industry. Stakeholders can stay informed about developments by accessing further information through SEDAR+ or the Company’s website.
Contact Greenhawk for More Information
For additional information, please reach out to:
David Jagodzinski, Director of Corporate Development
Phone: +1 (416) 504-2020
Email: info@grhk.ca
Frequently Asked Questions
What is Greenhawk's recent financial initiative?
Greenhawk has restructured its $2.7 million debenture with CGIP to enhance its financial position and support oil development.
What will the New Credit Facility finance?
The New Credit Facility is intended to finance the development and testing of oil wells in the Doba Project.
How much will the New Credit Facility cost Greenhawk?
The New Credit Facility will accrue interest at a rate of 15% per annum and has a maturity of 24 months.
What changes does this restructuring bring for the Doba Project?
It allows for increased investment in the Doba Project while canceling the prior 2024 Debenture.
How can I get more information about Greenhawk?
Investors and interested parties can visit Greenhawk's pages on SEDAR+ or contact their corporate development team directly.
