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$40,000,000 or higher. GHG has contracted a third-party valuation of this initial assessment value to support such appraisal.

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.