Global Energy Metals Completes Transformational Acquisition to Take Full Control of Millennium and Mount Isa Cobalt Projects in Queensland Australia.
Global Energy Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 is pleased to announce that it has completed the acquisition from Hammer Metals Limited (“Hammer”) of the remaining interest in the Millennium Project that Global Energy Metals did not already own pursuant to the share sale agreement dated November 27, 2018 (the “Millennium Acquisition Agreement”), among the Company, Hammer and its subsidiaries, including the acquisition of the Mount Isa Projects, which acquisitions were previously announced by news releases dated June 26, 2018 and November 29, 2018.
GEMC Chief Executive Officer, Mitchell Smith said:
“The outright acquisition of the Millennium Project adds to our portfolio one of the most exciting scalable primary-cobalt projects in the industry. With our strong understanding of the potential for the high-grade Millennium project and surrounding land package, together with Hammer’s extensive jurisdictional experience in Mount Isa, positions GEMC well to bring the project closer to development and deliver significant value to our shareholders.”
Pursuant to the terms of the Millennium Acquisition Agreement, Global Energy Metals issued to Hammer 19,255,641 common shares such that Hammer became an insider of Global Energy Metals holding 19.9% of the Company’s then issued and outstanding common shares. For so long as Hammer maintains a 10% interest in Global Energy Metals, Hammer has the right to nominate one person to the Global Energy Metals’ board of directors.All shares issued in connection with the acquisition of the Millennium Project and the Mt. Isa Projects to Hammer are subject to a hold period of four months and one day from the date of issuance of the shares. In addition to the statutory hold period, the shares issued to Hammer are also subject to a voluntary pooling agreement pursuant to which 20% of the shares have been released concurrent with closing of the transaction, 40% of the shares will be released on December 27, 2019 and the remaining 40% will be released on June 27, 2020. Further, the agreement provides that the release of the shares to Hammer will be accelerated in the event that the trading price of the Company’s shares over a 10 consecutive day period reaches certain thresholds.
Mr. Paul Sarjeant, P. Geo., is the qualified person for this release as required by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein.
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 now holds 100% of the Millennium Cobalt Project and two neighbouring discovery stage exploration-stage cobalt assets in Mt. Isa, Australia.
It also currently owns 70% of the Werner Lake Cobalt Mine in Ontario, Canada, has an option to acquire an 85% interest in two cobalt exploration projects in Nevada, 150km East of the Tesla Gigafactory.
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