REG - Touchstone Explrtn. - US$7 MILLION REVOLVING LOAN FACILITY

Touchstone ExplorationAnnouncement

26/05/2023 07:00

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RNS Number : 7329A  Touchstone Exploration Inc.  26 May 2023

TOUCHSTONE ANNOUNCES ADDITIONAL US$7 MILLION REVOLVING LOAN FACILITY

 

CALGARY, ALBERTA (May 26, 2023) - Touchstone Exploration Inc. ("Touchstone",
"we", "our" or the "Company") (TSX, LSE: TXP) announces that Touchstone
Exploration (Trinidad) Ltd., our wholly owned Trinidadian subsidiary, has
entered into a second amended and restated loan agreement with our Trinidad
based lender providing for an additional US$7 million revolving loan (the
"Amended Loan Agreement").

 

The Amended Loan Agreement provides for a US$7 million revolving loan facility
in addition to the existing term facility. The existing term facility
component of the Amended Loan Agreement currently has a principal balance of
US$25.5 million, with seventeen equal and consecutive quarterly principal
payments of US$1.5 million outstanding and a maturity date of June 15, 2027.
Republic Bank Limited is continuing to act as the sole lender, arranger and
facility agent of the Amended Loan Agreement.

 

Touchstone intends to use the revolving loan proceeds to maintain financial
flexibility while we proceed with Royston-1X production testing operations and
Cascadura facility construction where we continue to target for first
production on or around June 30, 2023.

 

Aside from adding the revolving loan component, the Amended Loan Agreement did
not alter any material terms of the Company's first amended and restated loan
agreement effective December 20, 2021. The revolving component of the Amended
Loan Agreement has the following terms and conditions, with no additional
financial or affirmative and negative covenants other than as provided under
the first amended and restated loan agreement between the parties.

 

 Borrower:                  Touchstone Exploration (Trinidad) Ltd.
 Additional facility type:  Revolving loan
 Amount:                    US$7,000,000
 Term:                      One year, with the option to extend annually by additional periods of up to
                            one year
 Interest rate:             Fixed on drawdown date, based on the one year term Secured Overnight Financing
                            Rate (SOFR) plus an applicable margin per annum, reset annually
 Interest payments:         Payable monthly in arrears
 Repayment:                 Principal may be repaid at any time, on or before the maturity date without
                            penalty and any amounts repaid may be redrawn at any time
 Collateral:                Increase of existing senior mortgage debenture over the fixed and floating
                            assets of the Borrower and its subsidiaries

 

Touchstone Exploration Inc.

 

Touchstone Exploration Inc. is a Calgary, Alberta based company engaged in the
business of acquiring interests in petroleum and natural gas rights and the
exploration, development, production and sale of petroleum and natural gas.
Touchstone is currently active in onshore properties located in the Republic
of Trinidad and Tobago. The Company's common shares are traded on the Toronto
Stock Exchange and the AIM market of the London Stock Exchange under the
symbol "TXP".

 

For further information about Touchstone, please visit our website at
www.touchstoneexploration.com (http://www.touchstoneexploration.com/) or
contact:

 

Touchstone Exploration Inc.

Paul Baay, President and Chief Executive
Officer                       Tel: +1 (403) 750-4487

Scott Budau, Chief Financial Officer

Shore Capital (Nominated Advisor and Joint Broker)

Daniel Bush / Toby Gibbs / Iain
Sexton
Tel: +44 (0) 207 408 4090

 

Canaccord Genuity (Joint Broker)

Adam James / Gordon
Hamilton
            Tel: +44 (0) 207 523 8000

 

FTI Consulting (Financial PR)

Nick Hennis / Ben Brewerton
 
Tel: +44 (0) 203 727 1000

Email: touchstone@fticonsulting.com (mailto:touchstone@fticonsulting.com)

 

Advisories

 

Forward-Looking Statements

 

Certain information provided in this announcement may constitute
forward-looking statements and information (collectively, "forward-looking
statements") within the meaning of applicable securities laws. Such
forward-looking statements include, without limitation, forecasts, estimates,
expectations and objectives for future operations that are subject to
assumptions, risks and uncertainties, many of which are beyond the control of
the Company. Forward-looking statements are statements that are not historical
facts and are generally, but not always, identified by the words "expects",
"plans", "anticipates", "believes", "intends", "estimates", "projects",
"potential" and similar expressions, or are events or conditions that "will",
"would", "may", "could" or "should" occur or be achieved. The forward-looking
statements contained in this announcement speak only as of the date thereof
and are expressly qualified by this cautionary statement.

 

Specifically, this announcement includes, but is not limited to,
forward-looking statements relating to the Company's expected use of proceeds
from the additional funds provided in the revolving loan component of the
Amended Loan Agreement; Touchstone's development and exploration plans and
strategies, including Cascadura facility construction operations and the
expected timing of completion and initial production therefrom; and the
Company's current and future financial position including the sufficiency of
resources to fund future capital expenditures and maintain financial
liquidity.

 

Although the Company believes that the expectations and assumptions on which
the forward-looking statements are based are reasonable, undue reliance should
not be placed on the forward-looking statements because the Company can give
no assurance that they will prove to be correct. Since forward-looking
statements address future events and conditions, by their very nature they
involve inherent risks and uncertainties. Actual results could differ
materially from those currently anticipated due to a number of factors and
risks. Certain of these risks are set out in more detail in the Company's 2022
Annual Information Form dated March 23, 2023 which is available under the
Company's profile on SEDAR (www.sedar.com (http://www.sedar.com/) ) and on the
Company's website (www.touchstoneexploration.com
(http://www.touchstoneexploration.com/) ). The forward-looking statements
contained in this announcement are made as of the date hereof, and except as
may be required by applicable securities laws, the Company assumes no
obligation or intent to update publicly or revise any forward-looking
statements made herein or otherwise, whether as a result of new information,
future events or otherwise.

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