Monumental Energy Corp. Enters into a Definitive Agreement with Taranaki Ventures Limited FOR a 25% Royalty Interest IN the Copper Moki Oil & Gas Workover Wells
MONUMENTAL ENERGY CORP. ENTERS
INTO A DEFINITIVE AGREEMENT WITH
TARANAKI VENTURES LIMITED FOR A 25%
ROYALTY INTEREST IN THE COPPER MOKI
OIL & GAS WORKOVER WELLS
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.
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For further information:
Contact Information: Michelle DeCecco, Chief Executive Officer and
Director, Email: [email protected] Or Maximilian Sali, VP Corporate Development and
Director, Email: [email protected], Phone: 1-604-367-8117
CO: Monumental Energy Corp.
CNW 14:05e 25-OCT-24