Western Sierra Resource Corporation Completes Definitive Agreement to Consolidate Assets, Retire Debt and Access Funding for New Projects Utilizing Its Strategic Water Infrastructure Assets in Colorado
STEAMBOAT SPRINGS, Col., Feb. 08, 2021 (GLOBE NEWSWIRE) -- WESTERN SIERRA RESOURCE COPORATION (“WSRC” or the “Company”) (OTC: WSRC) is pleased to announce that it has signed the Definitive Agreement with Prescient Strategies Group LLC (“PSG”) and Global Hemp Group (CSE: GHG/OTC: GBHPF/FRANKFURT: GHG) for Global Hemp Group to acquire Western Sierra Resource Corporation’s (“WSRC”) Preferred A Class Share holdings (“WSRC Prefs”) from PSG in a private, third party transaction.
Closing of the transaction is expected to be on or about February 9, 2021 upon fulfillment of certain Conditions Precedent, including:
- WSRC restructuring certain unsecured debt prior to the issuance of the GHG Prefs;
- GHG providing the necessary initial payments to complete the transaction and other Debt Restructuring (completed).
For complete details of the transaction, please refer to the Company’s news release of January 20, 2021. As soon as practicable, each party shall provide all necessary information and documentation to the Canadian Securities Exchange (the “CSE”).
The resulting acquisition of these WSRC Prefs by GHG will provide WSRC access to capital to retire its existing debt obligations and the means to utilize its strategic water infrastructure assets as an integral part of the GHG Colorado Hemp-Agro Industrial Zone (“HAIZ”) project. Documented historical valuations of the 4,000-acre feet of water rights and associated infrastructure are based on 2013 and 2015 MAI appraisals and engineering reports, which collectively support a value of US
The Colorado HAIZ will be developed under the banner of Innovative Hemp Technologies (“IHT”). IHT’s core objective; to develop “green” and “affordable” homes in a Planned Unit Development (“PUD”) utilizing hemp-based construction materials to meet historical pent-up demand in the area, which will include development of large-scale irrigation and cultivation of industrial hemp, and the manufacture of hemp-based construction products and textiles. This will significantly expand the existing water rights and infrastructure assets while generating multiple revenue streams for the Companies.
By utilizing a campus setting like that of the HAIZ, the IHT will efficiently implement these vertically integrated functions (water, agriculture, processing, housing). Proven industry professionals have been engaged to work alongside IHT’s management in the areas of agriculture, R&D, manufacturing, and construction to achieve the Company’s objectives.
Execution of the HAIZ project will create substantial shareholder value through the incremental introduction of additional (multiple) revenue streams to meet IHT’s objectives and set GHG on a path to become a leader in sustainable hemp-based “green” construction in the United States. The Colorado “HAIZ” will become a “showcase” project to demonstrate “green” hemp construction products and technologies for third-party offtake and for replication in other suitable U.S. markets.
The project will leverage the existing water rights and infrastructure to turn “dry land” farming acreage into irrigated land with valuable water rights that can subsequently be used to develop “affordable housing” and high value agricultural crops such as industrial hemp. The Company’s vision with GHG is to take the hemp grown onsite and replace much of the conventional building materials used at the project with sustainable, hemp-based building materials. This project contemplates a 25-year build-out. The luxuries of a long-term project with demonstrably high demand are:
a) economies of scale;
b) opportunity to implement learned efficiencies;
c) opportunity to continually fine-tune product offerings though intimate familiarity with a specific market;
d) access to new markets stemming from other by-products of the hemp processing, such as fibre and microfibre.
These elements combined with predictably increasing prices and diminishing competition over the project term are likely to result in improved profitability year-over-year.
About Western Sierra Resource Corporation:
Founded in 1907, Western Sierra Resource Corporation (a Utah corporation), has historically been a gold and silver mining company which continues to own several historical precious metal reserves in Arizona. In 2014 the Company broadened its vision to include natural (and renewable) resources with its acquisition of water rights and associated infrastructure assets in Colorado suitable for myriad “beneficial use” projects. These projects include, but are not limited to, agricultural production; affordable housing; development of “green” energy and energy conservation technologies; real estate development; recreation; stock watering; greenhouse production; open space maintenance; and wildlife habitat. The Company continues to develop and expand “green” energy savings technology opportunity through last year’s announced acquisition of Mystere Power Group (MPG); Helium development opportunity through its joint venture with LTA Exploration; and gold and silver mining opportunities in Nevada and Arizona.
Forward Looking Statements:
This release includes “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such statements include any that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words “estimate”, “project”, “intend”, “forecast”, “anticipate”, “plan”, “planning”, “expect”, “believe”, “likely”, “should”, “could”, “would”, “may” or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the company’s actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including those relating to the Company’s ability to grow. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include the Company’s operating history and resources, together with all usual and common economic, competitive, and equity market conditions / risks.
Contact:
Western Sierra Resource Corp
westernsierraresource.com
Twitter: @wsrcorp
Roger Johnson, CEO
Roger.Johnson@westernsierraresource.com
Dennis Atkins, CFO
Dennis.Atkins@westernsierraresource.com
