TORONTO, Oct. 23, 2020 (GLOBE NEWSWIRE) -- Terra Nova Resources Inc. (“TNR” or “the Company”) (CSE: TENO) announces that the Company has received notice from Armour Energy Limited (Armour) that Armour intends to exercise its option right (the “Option Right”) to acquire the Company’s remaining 20.6667% participating interest in Petroleum Exploration Licenses (PELs) 112 and 444 (collectively, the “Licenses”) in the Cooper-Eromanga Basins in South Australia.
The Option Right, originally granted to Oilex Ltd. and acquired by Armour from Oilex, was granted pursuant to the option and sale agreement entered into among the Company, Oilex and Perseville Investing Inc. on or about August 13, 2019 (the “Option and Sale Agreement”). Pursuant to the Option and Sale Agreement, the Company initially sold to Oilex a 30.833% interest in the Licenses in consideration for 9,166,333 ordinary shares of Oilex at a deemed price of A$0.003 per share and A$18,750 in cash, issued and paid upon entry in the Option and Sale Agreement, plus an additional A$46,250 in cash to be payable upon completion (the “Tranche 2 Installment”). In lieu of cash, the Company agreed to accept an additional 13,290,646 ordinary shares of Oilex in payment of the Tranche 2 Installment. The Company was also refunded A$30,833 in reclamation bonds in connection with the sale of the 30.833% interest in the Licenses to Oilex.
To exercise the Option Right, Oilex was required to issue to the Company an additional 20,666,700 ordinary shares of Oilex at a deemed price of A$0.003 per share or A$62,000. In lieu of the Oilex ordinary shares, the Company has agreed to accept payment of A$62,000 in cash in payment of the option exercise price.
“The divestiture of our remaining interests in Australia will allow the Company to now strategically focus on the digital health and wellness sector, and our transaction with WellteQ, a leading provider of corporate wellness solutions within Asia-Pacific” stated Mark Lawson, TNR’s Chief Executive Officer and Director.
About Terra Nova Resources Inc .
Terra Nova Resources Inc. is an oil and gas company that has a 20.6667% working interest in two onshore petroleum exploration licenses ("PELs"), being PEL 112 and PEL 444, including a 1.47% gross overriding royalty interest on the PELs, located on the western flank of the Cooper Eromanga Basin in the State of South Australia, Australia.
For more information please contact:
Mark Lawson
CEO & Director
Terra Nova Resources Inc.
T: +1 647 302 0393
Email: mark@lawson.net
This news release contains forward-looking information relating to TNR 's intentions to conduct the drilling programs and other statements that are not historical facts. Such forward-looking information is subject to important risks and uncertainties that could cause actual results to differ materially from what is currently expected, for example: risks related to oil and gas exploration, development, exploitation, production, marketing and transportation, loss of markets, volatility of commodity prices, currency fluctuations, competition from other producers, inability to retain drilling rigs and other services, reliance on key personnel, and insurance risks.. Findings by other oil and gas issuers does not necessarily indicate that TNR will be successful in making such findings in Australia. In making such forward- looking statements, TNR have relied upon certain assumptions relating to geological settings, commodity prices, the stability of markets and currencies and the availability of capital to TNR in order to continue with the seismic and drilling programs. You should not place undue importance on forward-looking information and should not rely upon this information as of any other date. While TNR may elect to, TNR i s under no obligation and does not undertake to update this information at any particular time , except as required by applicable securities law.
THE CSE HAS NEITHER APPROVED NOR DISAPPROVED THE INFORMATION CONTAINED HEREIN AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE
