The Alberta Investment Management Corp. is investing in Calgary-based oil and gas company Ikkuma Resources Corp. through a $45-million financing deal.

According to the agreement, AIMCo will provide a second lien loan at an annual interest rate of 7.25 per cent.

In turn, AIMCo can purchase up to 6,750,000 common shares of the company for 86 cents each for up to three years.

Read: AIMCo invests in Calgary-based energy company

“AIMCo is very pleased to have an opportunity to increase our investment in Ikkuma Resources, on behalf of our clients, by way of this strategic financing relationship,” said Peter Pontikes, executive vice-president of public equities at AIMCo.

“AIMCo enjoys a strong working relationship with Ikkuma’s accomplished management team, and we have great confidence in their ability to most effectively utilize this investment to navigate current challenges facing the market, while also positioning the company for future growth.”

Read: AIMCo enters financing partnership with Calgary oil and gas company

AIMCo has supported the company since its creation several years ago, said Tim de Freitas, president and chief executive officer at Ikkuma Resources.

“Having a large sophisticated Alberta-based institutional investor alongside Ikkuma is a privilege. . . . This investment increases the corporation’s liquidity and allows it to pursue its exciting new light oil discovery, through 2017 and beyond.”

Copyright © 2018 Transcontinental Media G.P. Originally published on benefitscanada.com

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