Western Sierra Resource Corporation Status Report and Acceptance of a $25 Million Non-Diluting Financing Commitment

Rhea-AI Summary

Western Sierra Resource Corporation (OTC PINK: WSRC) has finalized a $25 million funding agreement with Beton Inc., combining debt and equity financing without diluting shareholder value. The funding aims to leverage WSRC's land and water assets for cultivating industrial hemp and manufacturing hemp-based construction materials. The company plans to retire existing debt, fund various projects, and possibly generate significant revenue from precious metal recovery and helium production. This partnership aligns with a commitment to environmental stewardship and economic benefits for local communities.

Positive

• Finalization of a $25 million non-dilutive funding agreement with Beton Inc.
• Funding will enable the cultivation of industrial hemp and production of hemp-based construction materials.
• Plans to retire existing debt and provide immediate operating capital with initial $10 million.
• Potential significant revenue generation from precious metals recovery with a recovery rate of $30,000 per ton.
• Expected incremental revenue of $15 million from a five-year master lease of assets.

Negative

• None.

STEAMBOAT SPRINGS, CO / ACCESSWIRE / May 18, 2022 / WESTERN SIERRA RESOURCE CORPORATION (OTC PINK:WSRC) announces, that consistent with its May 11, 2022, press release, WSRC's final review and acceptance of a $25 Million Funding Agreement was completed May 16, 2022; and subsequently executed by all Parties. This Funding Agreement with Beton Inc. represents $25 million in a combination of Debt and Equity Financing without dilution for the Company's shareholders.

$25 MILLION FINANCING COMMITMENT:

Beton Inc. is a non-public corporation functioning as the operational arm for a Private Foundation. The Foundation's stated mission is to preserve and improve farmland and water resources for rural communities, while at the same time generating economic benefit for the members of those communities. This resource stewardship mission includes implementation of regenerative agricultural practices to maintain and improve soil quality; utilize proven efficiencies to grow high-quality organic produce for local and regional consumption; and to otherwise employ methodologies and conservation technologies that reduce the carbon footprint associated with agriculture, construction, and energy production and storage. In WSRC's case, the use of its water assets for single-site irrigation of industrial hemp (as a renewable resource) from which to fabricate "green" building materials for construction of high-demand affordable housing, represents a vertically integrated project that aligns well with the Foundation's underlying philosophy for capital use.

According to Beton's President, Andrew Paul: "It is our pleasure to partner with WSRC in what we see as an opportunity to establish a "showcase" for environmental stewardship while adding homes, jobs, and other economic benefits for the Town of Hayden."

WSRC's President and CEO, Roger Johnson, adds: "Rural communities managing the post-pandemic migration of urban dwellers to rural America, means balancing desirable growth with preservation of a community's identity and resources. The Foundation's core mandates of conservation and preservation fit perfectly with WSRC's commitment to work with the Community and compliment the Town of Hayden's growth objectives. In addition, this non-dilutive funding makes it possible for the Company to proceed with its other projects which include environmentally conscious recovery of precious metals; helium production; and development of additional conservation technologies to generate significant revenue to the benefit of the Company's shareholders."

This $25 million commitment to fund the Company's operations monetizes WSRC's land, water, and mineral assets having an appraised and audited value of $60+ million.

An initial round of $10 million in Bond Financing is earmarked to retire existing debt and provide operating capital sufficient to immediately fund the Company's various near-term project requirements-without dilution for its shareholders. This initial round is anticipated over the next 30 to 45 days in exchange for participation in future net revenue generated by acceleration and expansion of the Company's current natural resource-related endeavors. A "Paid-Up" five-year Master Lease of the Company's assets is intended to provide an additional $15 Million in revenue incrementally over the next 180 days.

As each project phase matures, net revenue resulting from operations will be apportioned to each Party, and likewise, upon sale of individual project components (i.e., new home sales) net sales proceeds will also be apportioned between the Parties.

Consistent with the terms of the agreement, WSRC intends to:

1. incrementally utilize its land and water assets for cultivation of industrial hemp; manufacture of hemp-based construction materials; and to initiate development and subsequent construction of "green" affordable housing to help meet extraordinary pent-up demand.

2. initiate the modest but immediate processing and recovery of precious metals from tested above-ground material, and to subsequently scale into larger, ongoing mining operations at the Sage Hen location. Assay reports anticipate a potential recovery rate averaging $30,000 per ton using proprietary, environmentally friendly processing technologies.

3. fund the first of 12 helium production prospects, each governed by its own 3D seismic data set and under varying terms and agreement conditions. It is reasonable to assume that based on current supporting data, an average of one new prospect may be brought online over each of the twelve months following funding.

4. capitalize on multiple (but related) revenue generating and asset expanding opportunities that are expected to result from the above-mentioned core projects as they mature, and as operational efficiencies are achieved. The scale of funding anticipates such expansion.

WSRC's FORM 10 REGISTRATION Statement filed December 21, 2021, will be refiled pending response from the SEC concerning its December 31, 2021, year-end audit. The Company commissioned a year-end PCAOB audit on January 17, 2022, which was filed on April 14, 2022 with OTC Markets. The completion of the year-end audit became an SEC condition of the FORM 10 during the review period. Upon the revised effective date, WSRC will become an SEC full reporting company and begin filing Forms 10-K, 10-Q and 8-K. In addition, WSRC is in the process of filing a 144A REG S in compliance with SEC disclosure regulations concerning marketing to foreign investors.

About Western Sierra Resource Corporation:
Founded in 1907, Western Sierra Resource Corporation (a Utah corporation), has a 115-year history as gold and silver mining company with projects in Arizona, Nevada, California, and Mexico. WSRC currently owns six 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 for purposes of irrigating and cultivating industrial hemp; processing hemp for manufacture of various building products; and for construction of affordable homes utilizing hemp-based materials-among other beneficial uses. WSRC's intent is to become a broad-based resource company with high value and high-income generating assets including precious metals, real estate, water, agriculture, helium, and "green" technologies

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 Corporation
westernsierraresource.com

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@WSRCorp

SOURCE: Western Sierra Resource Corp.

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FAQ

What is the purpose of the $25 million funding agreement announced by WSRC?

The funding agreement aims to support the cultivation of industrial hemp, production of hemp-based materials, and various projects, including precious metal recovery and helium production.

Will the $25 million funding cause dilution for WSRC shareholders?

No, the funding agreement is structured to be non-dilutive for WSRC shareholders.

What financial impacts does WSRC expect from the new funding?

WSRC anticipates retiring existing debt, funding project requirements, and generating significant revenue from upcoming projects.

What types of projects will WSRC pursue with the new funding?

WSRC will focus on cultivating industrial hemp, manufacturing building materials, recovering precious metals, and engaging in helium production.

What is WSRC's goal with the partnership with Beton Inc.?

WSRC aims to align with Beton's mission of environmental stewardship while generating economic benefits for local communities through sustainable practices.