|By Marketwired .||
|August 22, 2013 07:58 PM EDT||
VANCOUVER, BRITISH COLUMBIA -- (Marketwired) -- 08/22/13 -- Super Nova Minerals Corp. (CNSX:SNP) (the "Company", or "Super Nova") Wolf Wiese, CEO of Super Nova, reports that the Company has signed a new farmout agreement with Elk Hills Petroleum Canada Ltd. ("Elk Hills") to acquire an optioned 87.5% working interest (before accounting for the underlying 20% carried interest) for the entire Elk Hills Petroleum land position of approximately 12,000 acres in its entirety which contains the Morris Block and the Cottonwood Creek Block on the Elk Hills Project in the Big Horn Basin of Montana.
Exercise of the option is subject to cash payments and the issuance of a total of 17,250,000 common shares of the Company. 4,687,500 of the issued shares will have a hold period expiring in 4 months, with the remaining shares being divided into three 4,187,500 share tranches having voluntary hold periods expiring after 6 months, 1 year, and 18 months, respectively. An additional 3 million dollars is due to Elk Hills, which payment will be derived from production should profitable production be achieved. The companies will share revenues 50% (40% after carried interest) each until Elk Hills has been paid $3,000,000. Following the $3,000,000 milestone, Super Nova will receive 87.5% (70% net of the 20% carried interest) and Elk Hills' payment will be reduced to 12.5% (10% net of the 20% carried interest). The Company is also required to duplicate a historic well drilled in 1983 on the Cottonwood Block of the Elk Hills property, complete a steam production test on the existing Bauwens 15-13 well and install a Five Spot on the Morris Block or Cottonwood Creek Block. A Five Spot consists of a central injector well with 4 producing wells located radially around it.
On behalf of the Board of Directors:
SUPER NOVA MINERALS CORP.
Wolf Wiese, President/ Chief Executive Officer
THIS PRESS RELEASE WAS PREPARED BY MANAGEMENT WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NEITHER CNSX NOR ITS REGULATION SERVICES PROVIDER ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE. THIS DOCUMENT CONTAINS CERTAIN FORWARD LOOKING STATEMENTS WHICH INVOLVE KNOWN AND UNKNOWN RISKS, DELAYS, AND UNCERTAINTIES NOT UNDER THE COMPANY'S CONTROL WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS OF THE COMPANY TO BE MATERIALLY DIFFERENT FROM THE RESULTS, PERFORMANCE, OR ACHIEVEMENTS IMPLIED BY THESE FORWARD LOOKING STATEMENTS. WE SEEK SAFE HARBOR.
Super Nova Minerals Corp.