Monumental Energy (TSX-V: MNRG)(OTC: MNMRF) Founder Max Sali on Strategic Investment in New Zealand Energy Corp. & Potential Drilling of Chile-based Lithium Assets in 2024
Gerardo Del Real: This is Gerardo Del Real with Resource Stock Digest. Joining me today is the founder of the newly-branded Monumental Energy — Mr. Max Sali. Max, it's been a bit. It's great to have you back on. How are you today, sir?
Max Sali: It's been a very long time, probably too long. And I'm very happy to be chatting with you again after such a long time and very happy that we've had the rebranding of the company and, obviously, our new transaction we just announced. And I think this is a turning point for Monumental.
Obviously, it's been a tough run moving the lithium assets forward with community. But this is an investment that we were able to make into New Zealand Energy Corp. (TSX-V: NZ)(OTC: NZERF), which, based on the success of the Tariki-5 gas well, should provide Monumental with additional capital, non-dilutive to shares, which is exactly what you want to do for a mining company in 2024.
Gerardo Del Real: You look at a lot of deals, Max, and we talked about this off-air just a bit. With the amount of deal flow that is accessible to you, why New Zealand Energy… what was it about the investment that appealed to you?
Max Sali: We've looked at a lot of stuff. We've looked at stuff in the lithium space, we've looked at other critical metals. And this was an asset or an investment that kind of walked into my office where I've known about New Zealand Energy since their IPO. I think it was back in 2010 or 2011.
It was the first million dollars I ever personally made, and it was a massive success. This company and this asset, I think, had a peak market value of C$300 million to C$350 million. The price of oil and gas came off back in 2013. And this facility sitting in New Zealand Energy Corp. pretty much sat dormant for 10 years.
I’ve followed the story and watched it, and they’ve rolled it back more times than playdough. You have an extremely tight vehicle with new management with significant capital to invest. And these gas wells in New Zealand get significant premiums to what you get in Canada.
You're getting $8 New Zealand currency per MCF. It goes directly to market. And Monumental had the opportunity to invest in the seed round. And typically, tier-two TSX venture companies aren't allowed to invest in other public companies. But we applied to the exchange for a waiver. They were very good, they were very fast, and I really want to thank the exchange for allowing us to do this transaction.
Gerardo Del Real: What comes next for Monumental? What comes next in 2024? Why should shareholders be bottom-picking at the current 4 or 5 cent per share price that exists right now because it’s either a heck of an opportunity or it's going to be tough going. I personally think that the tough going is behind Monumental and that there's a lot of runway. But what comes next?
Max Sali: You know what… we have lots of capital… we have a very good shareholder base. I bought more shares yesterday on the news. The fact is, this is an investment that would be significantly cheaper than anyone trying to do an option or a new area play in any kind of oil and gas facility.
This allows us to own a significant percentage of New Zealand Energy Corp. and gets our foot in the door. Again, I think having the cash we do allows us to make some bolder moves. But this move was definitely advised well through a lot of our peers and our advisors.
I think what will happen is, in 2024, we'll get the permits to drill the lithium assets in Chile, and this investment potentially allows us to finance anything additional we do in 2024 non-dilutive to shares.
Gerardo Del Real: I like it. Max, let's chat a bit more frequently. I suspect we will be chatting again soon. Anything else to add?
Max Sali: Yeah, you know what… it’s nice to have the rebrand and having Michelle on as interim CEO. She's done a fantastic job. It's good to see things now evolving and changing. It's been a good couple of changes that we've made at the company, and I look forward to significant value for shareholders in 2024.
Gerardo Del Real: Alright, you have a good one. Thanks again, Max.
Max Sali: Thank you.Click here to see more from Monumental Energy