Whitemud Resources Announces Suspension of Commercial Operations
/NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES/
CALGARY, Nov. 16 /CNW/ - Whitemud Resources Inc. ("Whitemud" or the "Company") (WMK - TSXV) announces that effective immediately, the Company is suspending operations as a result of the withdrawal of financing proposal by the Werklund Capital Corporation and the limited cash available to the Company. The employees of the Company have been served notice of termination and resources required to provide necessary administration and security of the plant will be obtained on a contract basis. The Board of Directors will focus its attention on finding a buyer for the Company and/or a source of finance to recapitalize the Company.
Whitemud has significant assets that include:
- Mineral leases containing 159.3 million tonnes of measured and indicated mineral resources of kaolin ore, including 52.9 million tonnes of proven reserves
- A plant designed to produce 175,000 tonnes per year of metakaolin
- A patent for producing metakaolin
- Over $80 million in tax losses
The Company produces Whitemud(MK), a high-reactivity, cement-grade metakaolin that enhances the performance of cement used in construction and in oil and gas wells. The value-added performance of the product has been validated by extensive third-party testing and by its use in a number of large construction projects.
Key projects using Whitemud(MK) include the Bow Tower office building in Calgary, a water treatment plant construction project in southern California, a large power plant cooling tower project in Massachusetts, in addition to a variety of commercial and residential projects. Whitemud(MK) is currently being used to enhance cement properties for cementing oil wells by two large oil well services companies. Metakaolin has also recently been endorsed by some major engineering firms that are encouraging the use of metakaolin to help improve concrete quality and assist in reducing construction costs while minimizing the environmental footprint of projects. Whitemud recently entered into a U.S. distribution agreement with a leading supplier of performance additives to the concrete industry.
More information is available at www.whitemudresources.com
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statement
This press release may contain forward-looking statements which may include estimates, plans, expectations, opinions, forecasts, projections and guidance or other statements that are not statements of fact, and guidance or other statements that are not statements of fact, including without limiting the generality of the foregoing, statements regarding the expectations of finding a buyer for the Company and/or a source of finance to recapitalize the Company. The statements are subject to risks. The Company's forward-looking statements are expressly qualified in their entirety by this cautionary statement. Unless otherwise required by applicable securities laws, the Company does not intend nor does it undertake any obligation to update or review any forward-looking statements to reflect subsequent information, events, results or circumstances or otherwise.
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For further information: For further information:
Burl Aycock, CEO, Whitemud Resources, Telephone: (403) 695-1012 or Kelly Babichuk, President and COO, Whitemud Resources, Telephone: (403) 517-0040
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