Global Energy Metals Announces Signing of Definitive Agreement to Acquire Highly Prospective Cobalt Projects in Nevada, USA
Vancouver, BC / TheNewswire / January 21, 2019 / Global Energy Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 (“Global Energy Metals”, the “Company” and/or “GEMC”) is pleased to announce that the Company has signed a definitive agreement (the “Agreement”) with Nevada Sunrise Gold Corp (“Nevada Sunrise” or the “Optionor”) to acquire an 85% interest in the Lovelock Cobalt Mine (the “Lovelock Mine”) and the Treasure Box Project (“Treasure Box”), located in Churchill County, approximately 150 kilometres east of the Tesla Gigafactory in Sparks, Nevada.
Further to the LOI announced on September 11, 2018, and under the renegotiated terms of the Agreement, Global Energy Metals will now have the option to acquire 85% ownership interest in the Projects as highlighted below.
This transaction is subject to the acceptance of the TSX Venture Exchange, which the Company will be seeking forthwith.
- Nevada Cobalt: The right place at the right time in a superior mining jurisdiction which hosts several copper-gold projects nearby and benefits from having excellent infrastructure.
- Strategically Situated: Located in the Stillwater Range with good access, infrastructure in place and only 150 kilometres east of Sparks Nevada, home to – Tesla’s Gigafactory 1.
- Historic Producer: Limited, yet high-grade, production of cobalt, nickel and copper in the 1880s but the area has never been thoroughly explored in the modern era.
- High-Grade Cobalt: The general average of the 200 tons shipped in 1886 averaged 14 percent cobalt and 12 percent nickel (Source: “Mineral Resources of the United States for 1886”).
- Drill Ready: Eight diamond drill targets have been identified in addition to geological mapping, chip and channel sampling and geophysics.
- District Opportunity: Region shows strong enrichment in cobalt, nickel and copper making it very attractive for further exploration and expansion through other attractive growth opportunities.
Mitchell Smith, Global Energy Metals President & CEO, stated, “The acquisition of the Nevada cobalt projects is another significant milestone for GEMC. This transaction exposes the Company and its shareholders to a wealth of exploration opportunities in another top-tier mining district with proven mineral endowment. GEMC believes that the sizeable property package it has locked up in the heart of a very prolific and proven district, hosts the potential for significant cobalt exploration upside.”
Re-negotiated Terms of the Agreement
The Definitive Agreement now allows for GEMC to acquire an 85% interest in both Lovelock and Treasure Box subject to Nevada Sunrise first acquiring the interest pursuant to an underlying agreement with a third party vendor. The Agreement also allows for GEMC to reduce the exploration payments to USD $1,000,000 by the third anniversary of the Effective Date (as defined in the Agreement) a change from the LOI that required $2,500,000 in expenditures.
In order to exercise the option, the Company is required to complete the following:
- Issue to Nevada Sunrise of such number of common shares in the capital of Global (the “Payment Shares”) as is equal to USD $200,000 at a deemed price per share equal to the greater of: (a) $0.15; and (b) the Volume Weighted Average of the closing price of the Company’s shares for the 20 trading days immediately prior to the execution of the Agreement.
- Assume all future cash to the underlying vendor payable as scheduled below subject to an existing 2.0% net smelter royalty (the “Existing Royalty”):
March 22, 2019: USD $20,000 in cash;
December 22, 2019: USD $25,000 in cash; and
December 22, 2020: USD $30,000 in cash.
- Reimburse Nevada Sunrise for the issue by Nevada Sunrise of Nevada Sunrise common shares to the underlying vendor, with common shares of the Company, payable as scheduled below:
- March 22, 2019: such number of shares as is equal in value to 200,000 shares of Nevada Sunrise on the day prior to their issuance;
- December 22, 2019: such number of shares as is equal in value to 250,000 shares of Nevada Sunrise on the day prior to their issuance; and
- December 22, 2020: such number of shares as is equal in value to 300,000 shares of Nevada Sunrise on the day prior to their issuance.
- March 22, 2019: such number of shares as is equal in value to USD$5,000 to reimburse Nevada Sunrise for the payment made by Nevada Sunrise to Primus of USD$5,000.
- In order to maintain in force the Option granted to it, and to exercise the Option, Global must also incur Expenditures totaling USD$1,000,000 by the third anniversary of the Effective Date.
Mr. Paul Sarjeant, P. Geo., the Company’s VP Projects and Director, is the qualified person for this release as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein.
Global Energy Metals Corporation
(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals is focused on offering security of supply of cobalt, a critical material to the growing rechargeable battery market, by building a diversified global portfolio of cobalt assets including project stakes, projects and other supply sources. GEMC anticipates growing its business by acquiring project stakes in battery metals related projects with key strategic partners. Global Energy Metals currently owns 70% of the Werner Lake Cobalt Mine in Ontario, Canada and has entered into an agreement to acquire 100% of the Millennium Cobalt Project and two neighbouring discovery stage exploration-stage cobalt assets in Mt. Isa, Australia.
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