Salt Lake City, UT, October 04, 2024 –Northern Minerals & Exploration Ltd. (OTC Markets: NMEX) is pleased to announce that it has executed a Letter of Intent (“LOI”) to purchase 100% of the issued and outstanding common shares of an arm’s length private oil & gas company to acquire certain crude oil assets and reserves located in the province of Alberta, Canada (the “Assets” or the “Company”).
Under the terms of the LOI, NMEX has agreed to purchase the Assets in exchange for a combination of cash, common and preferred stock of NMEX for an aggregate purchase price of USD $500,000 (the “Purchase Price”).
The acquisition of the Assets is expected to close during the month of October 2024, subject to customary closing conditions such as due diligence, board approvals, regulatory approvals and the signing of a share purchase agreement (the “Definitive Agreements”)
Acquisition Summary and Rationale
The Assets that NMEX is proposing to acquire is a private Calgary, Alberta, Canada-based energy company engaged in the exploration, development and production of crude oil and natural gas reserves in the Western Canadian Sedimentary Basin.
The Company owns a 70% working interest in two crude oil wells and oil batteries encompassing 480 acres of mineral leases located in east central, Alberta.
The acquisition of the Assets aligns with NMEX’s long-term business strategy of developing oil and gas production and reserves in North America. This acquisition of the Assets establishes NMEX’s position in the Province of Alberta’s large area of extensive Upper Mannville Group series of hydrocarbon bearing formations and reservoirs that are actively being developed by several major oil and gas companies in eastern Alberta and Saskatchewan.