CALGARY, Alberta, Oct. 29, 2018 (GLOBE NEWSWIRE) -- Further to its press releases of October 9, 2018 and October 17, 2018, Niko Resources Ltd. (“Niko” or the “Company”)(TSX – “NKO”) provides the following update.
As previously announced, under the terms of the Company’s Facilities Agreement with its senior lenders (the “Lenders”), the receipt on October 17, 2018 of a default notice from the operator of the D6 production sharing contract (“PSC”) would result in an event of default under the Facilities Agreement unless the default under the D6 joint operating agreement (“JOA”) was cured within 10 days. As such, the Company requested that the Lenders waive such default. To date, consent from the Lenders for the waiver has not been received and accordingly, an event of default has occurred. No action has been taken by the Lenders and the Company continues to have discussions with the Lenders with whom the Company believes it has a positive relationship.
For additional information regarding the default under the D6 JOA and the consequences thereof (including the risks of the Company not being able to meet its funding requirements under the D6 PSC or its other obligations on a timely basis or at all), please review the Company’s press releases of October 9, 2018 and October 17, 2018 and the Company’s Management’s Discussion and Analysis for the three months ended June 30, 2018 filed on the Company’s SEDAR profile at www.sedar.com.
For further information, please contact:
Niko Resources Ltd. (403) 262‐1020, Glen Valk, VP Finance & CFO, or visit the Company's website at www.nikoresources.com
Forward-Looking Information
Certain statements in this press release constitute forward-looking information. Specifically, this press release contains forward-looking information, which may relate to the ability of the Company to fund its operations and meet its obligations and the possible actions of the Lenders. Such forward-looking information is based on a number of risks, uncertainties and assumptions, which may cause actual results or other expectations to differ materially from those anticipated and which may prove to be incorrect. Undue reliance should not be placed on forward-looking information. Such forward-looking information reflects the Company's current beliefs and assumptions and is based on information currently available to the Company. This forward-looking information is based on certain key expectations and assumptions, many of which are not within the control of the Company. In particular, the Company has requested that the Lenders waive a default under the Facilities Agreement. The Lenders may in their sole discretion determine to refuse this request, and may instead exercise certain rights held under the terms of the Facilities Agreement. Accordingly, absolutely no assurance can be made that the Company will be able to meet its funding requirements under the D6 PSC or its other obligations on a timely basis or at all, and nothing herein should be read as stating or inferring otherwise. The reader is cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be incorrect. Actual results may vary from the information provided herein as a result of numerous known and unknown risks and uncertainties and other factors and such variations may be material. Such risk factors include, but are not limited to, the risks discussed under the heading "Risk Factors" in the Company's Annual Information Form for the year ended March 31, 2018 and in the Company's public disclosure documents, and other factors, many of which are beyond the Company's control. Niko makes no representation that the actual results achieved during the forecast period will be the same in whole or in part as those forecast.
The forward-looking information included in this press release is expressly qualified in its entirety by this cautionary statement. The forward-looking information included herein is made as of the date of this press release and Niko assumes no obligation to update or revise any forward- looking information to reflect new events or circumstances, except as required by law.