VANCOUVER, BC, Oct. 25,
2024 /CNW/ - Monumental Energy Corp.
("Monumental" or the "Company") (TSXV: MNRG) (FSE:
ZA6) (OTCQB: MNMRF) is pleased to announce that it has entered into
a call option and royalty agreement (the "Agreement") with
New Zealand Energy Corp. ("NZEC")(TSXV: NZ) enabling the
Company to participate in the refurbishment and restart of two
significant previously producing oil wells in New Zealand. On exercise of the call option,
Monumental shall receive 25% of the value received from the sale of
oil and gas from the two wells.
The option and royalty agreement has been established between
Monumental's wholly-owned subsidiary Monumental Energy Corp NZ
Limited, and Taranaki Ventures Limited ("TVL"), a
wholly owned subsidiary of New Zealand Energy Corp.
("NZEC")(TSXV: NZ) dated October 25,
2024, pursuant to which, among other things, the Company
will participate in the repair and workover operation in order to
restart production of two wells, Copper Moki 1 & 2 ("CM 1
& 2"), which are located on a permitted block PMP 55491,
for which TVL holds a 100% interest.
In connection with the Agreement, the parties have agreed to the
terms of a royalty agreement that is annexed to the Agreement, that
will be deemed effective on and from the date on which the Company
elects to exercise the call option. In accordance with a detailed
budget and work plan, the Company will make monthly cash payments
to complete the repair and workover of CM 1 & 2, which is
estimated to take approximately three weeks upon commencement and
remains subject to the applicable consent of the Minister in
New Zealand in accordance with the
New Zealand Crown Minerals Act 1991.
The total cost to complete the workover of CM 1 & 2 is
estimated at approximately NZ$800,000. In consideration, TVL
granted to Monumental the call option to acquire a royalty interest
payable upon commencement of production in accordance with the
royalty agreement. The call option is exercisable by the Company in
its sole discretion upon successful completion of the workover of
CM 1 & 2 and commencement of production. Once effective, the
royalty is payable by TVL within 30 days after the end of each
quarter, calculated on an open book basis, by multiplying the sales
receipts received by TVL from the sale or other disposal of
petroleum produced from one or both of CM 1 & 2 pursuant to the
sales arrangements in place at such time less permissible
deductions as specified in the royalty agreement ("Net
Receipts") by 75% and be payable until a sum equivalent to the
workover costs has accrued to the Company, and thereafter the
royalty will be calculated by multiplying the Net Receipts by
25%.
If the workover is successful and production commences, the
oil from CM 1 & 2 will be trucked three kilometres to the
Waihapa production facility, which is 50% owned by NZEC, to be
processed and sold directly to the New
Zealand market. Associated gas will be used as site fuel gas
and any excess will be transported to Waihapa for processing and
sales via pipeline.
Monumental and NZEC expect the workovers will begin within Q1
2025, subject to the satisfaction of the conditions precedent under
the Agreement, which include the final approval of the TSX Venture
Exchange (the "Exchange") of the Agreement, the applicable
consent of the Minister in New
Zealand in accordance with the New Zealand Crown Minerals
Act 1991, and the availability of the requisite equipment and
personnel to carry out the workovers.
The Agreement is subject to the prior acceptance of the
Exchange, and, if completed, the proposed transaction will
constitute a "Fundamental Acquisition" for the Company pursuant to
Exchange Policy 5.3 – Acquisitions and Dispositions of
Non-Cash Assets. The acceptance of the Exchange will require,
among other things, the completion and filing of National
Instrument 51-101 – Standards of Disclosure for Oil and Gas
Activities report (the "51-101 Report"). The Agreement
is considered a non-arm's length transaction because Frank Jacobs is a director of the Company and
NZEC.
Trading in the common shares of the Company has been halted in
accordance with the policies of the Exchange and will remain halted
until such time as all required documentation has been filed with
and accepted by the Exchange and permission to resume trading has
been obtained from the Exchange.
About Monumental Energy Corp.
Monumental Energy Corp. is an exploration company focused on the
acquisition, exploration, and development of properties in the
critical and clean energy sector. The Company has an option to
acquire a 75% interest and title to the Laguna cesium-lithium brine
project located in Chile. The
Company holds a 2% net smelter return royalty on Summit Nanotech's
share of any future lithium production from the Salar de Turi
Project. The Company owns securities of New Zealand Energy
Corp.
On behalf of the Board of Directors,
/s/ "Michelle DeCecco"
Michelle DeCecco, CEO
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this news release.
Forward Looking Information
This news release contains "forward–looking information or
statements" within the meaning of applicable securities laws, which
may include, without limitation, the potential plans for the
Company's projects, terms of the Agreement and the
royalty, TSX Venture Exchange approval of the
Agreement, completion and filing of a 51-101 Report,
applicable New Zealand regulatory
approvals, availability of equipment and personnel, anticipated
workover of CM 1 & 2, completion of the workover and
commencement of production of CM 1 & 2, potential oil and gas
transactions, other statements relating to the technical, financial
and business prospects of the Company, its projects, its goals and
other matters. All statements in this news release, other than
statements of historical facts, that address events or developments
that the Company expects to occur, are forward-looking statements.
Although the Company believes the expectations expressed in such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual
results may differ materially from those in the forward-looking
statements. Such statements are based on numerous assumptions
regarding present and future business strategies and the
environment in which the Company will operate in the future,
including the price of metals and the price of oil and gas, the
ability to achieve its goals, that general business and economic
conditions will not change in a material adverse manner and that
financing will be available if and when needed and on reasonable
terms. Such forward-looking information reflects the Company's
views with respect to future events and is subject to risks,
uncertainties and assumptions, including the risks and
uncertainties relating to the interpretation of exploration
results, risks related to the inherent uncertainty of exploration
and cost estimates and the potential for unexpected costs and
expenses and those other risks filed under the Company's profile on
SEDAR+ at www.sedarplus.ca. While such estimates and assumptions
are considered reasonable by the management of the Company, they
are inherently subject to significant business, economic,
competitive and regulatory uncertainties and risks. Factors that
could cause actual results to differ materially from those in
forward looking statements include, but are not limited to,
continued availability of capital and financing and general
economic, market or business conditions, failure to secure
personnel and equipment for work programs, adverse weather and
climate conditions, risks relating to unanticipated operational
difficulties (including failure of equipment or processes to
operate in accordance with specifications or expectations, cost
escalation, unavailability of materials and equipment, government
action or delays in the receipt of government approvals, industrial
disturbances or other job action, and unanticipated events related
to health, safety and environmental matters), risks relating to
inaccurate geological assumptions, failure to maintain or obtain
all necessary government permits, approvals and authorizations,
failure to obtain or maintain surface access agreements or
understandings from local communities, land owners or Indigenous
groups, fluctuation in exchange rates, the impact of viruses and
diseases on the Company's ability to operate, capital market
conditions, restriction on labour and international travel and
supply chains, decrease in the price of lithium, cesium and other
metals, decrease in the price of oil and gas, loss of key
employees, consultants, or directors, failure to maintain or obtain
community acceptance (including from the Indigenous communities),
increase in costs, litigation, and failure of counterparties to
perform their contractual obligations. The Company does not
undertake to update forward–looking statements or forward–looking
information, except as required by law.
SOURCE Monumental Energy Corp.