“Powered by Cobalt … Driven by Demand” TSX.V GEMC GLOBAL ENERGY METALS SIGNS BINDING AGREEMENT TO ACQUIRE ADVANCED AUSTRALIAN COBALT PROJECT
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GLOBAL ENERGY METALS SIGNS BINDING AGREEMENT TO ACQUIRE
ADVANCED AUSTRALIAN COBALT PROJECT
VANCOUVER, BC / TNW-ACCESSWIRE / MAY 1, 2017 / GLOBAL ENERGY METALS
CORP. TSXV:GEMC (“Global Energy Metals”, the “Company” and/or "GEMC") has
entered into a binding letter agreement with Hammer Metals Ltd.("Hammer") for
the exclusive right to earn up to a 75% interest, in the Millennium Cobalt Project
(the "Project" and/or "Millennium"), an advanced mineral exploration and
development property located in the famed Mount Isa mining region of Australia.
Additionally, GEMC holds a right of first refusal ("RoFR") to acquire any
additional interest in the Project, which Hammer may wish to sell.
Global Energy Metals’ acquisition of the Millennium Cobalt Project is the first of
several expected acquisitions of robust cobalt projects with material that is of
interest to the Company's battery and offtake partners in Asia, meeting GEMC’s
investment requirements of having an existing resource, metallurgical test work
and being in a non-DRC jurisdiction.
The Millennium Project offers significant benefits for GEMC including:
• The Millennium Project is a significant cobalt-copper deposit that remains
open for expansion.
• The Project is located close to well established mining, transport and
processing infrastructure along with a skilled workforce in the regional
centres of Mount Isa and Cloncurry.
• Millennium shows potential for scale and excellent grade and will fit well
into GEMC's portfolio of quality cobalt projects.
• Preliminary hydrometallurgical studies have demonstrated the potential
for the recovery of saleable cobalt and copper concentrates.
• Historical estimate* – Hammer completed a JORC (2012) resource on the
property as disclosed in a press release dated December 6, 2016
comprised of an Inferred resource of 3.1 million tonnes @ 0.14% Co,
0.34% Cu and 0.12g/t Au (using CuEq cutoff of 1.0%)
• GEMC continues to execute its strategy of becoming a supplier of non-
DRC cobalt material to downstream partners; Millennium is the first
acquisition to compliment its wholly owned Canadian primary cobalt
project.
Recent drilling in 2016 from Hammer’s 23 RC drill hole program (Hammer ASX
releases, 13/09/2016 and 14/10/2016) included peak cobalt results with 8 metres
at 0.35% Co in MIRC023 and 4 metres at 0.51% Co in MIRC013.
Other intercepts included:
• 19 m at 0.38% Co, 1.27% Cu, 0.70 g/t Au, (4.12% CuEq) in Q-012;
• 24 m at 0.15% Co, 0.23% Cu and 0.09 g/t Au (1.17% CuEq) in MIRC013;
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including 4 m at 0.51% Co, 0.46% Cu and 0.16 g/t Au (3.64% CuEq),
• 12 m at 0.19% Co, 0.57% Cu and 0.19 g/t Au (1.85% CuEq) in MIRC014;
including 4 m at 0.30% Co, 0.44% Cu and 0.14 g/t Au (2.33% CuEq),
• 40 m at 0.07% Co, 0.32% Cu and 0.13 g/t Au (0.82% CuEq) in MIRC017;
including 5 m at 0.15% Co, 0.82% Cu and 0.21 g/t Au (1.90% CuEq); and
• 33 m at 0.16% Co, 0.66% Cu and 0.34 g/t Au (2.11% CuEq) in MIRC023;
including 8 m at 0.35% Co, 0.08% Cu (2.19% CuEq).
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All intercepts reported represent core lengths; true width will vary depending on
the intersection angle with the targeted zone. Holes are generally planned to
intersect mineralised zones as close to perpendicular as possible. Copper
equivalent (CuEq) calculation is as follows: CuEq% = Cu% +(Co%*5.9) +(Au
ppm*0.9) +(Ag ppm*0.01). Price assumptions utilised by Hammer for the JORC
resource estimate and drill hole intercepts are (all $US); Au - $1,300/oz, Ag -
$20/oz, Co - $27,000/t and Cu - $4,600/t.
* This work was based on a technical report by Haran Consulting Pty Ltd, issued
November 29, 2016 conforming to JORC (2012) reporting standards for re-
sources estimates. As Hammer uses JORC categories, it should be noted that
the confidence in the estimate of JORC inferred mineral resources is usually not
sufficient to allow the results of the application of technical and economic param-
eters to be used for detailed planning. However, the Company deems this re-
source still relevant because economic parameters have not negatively change
significantly since publication date and the Company has confidence in the esti-
mate based on review of technical data.
There are no more recent estimates or data available. To upgrade this work from
an historical estimate to a current mineral resource, the Company will review the
data set and complete additional drilling and modeling work to verify the historic
estimate as a current mineral resource or mineral reserve.
A qualified person has not done sufficient work to classify the historical estimate
as current mineral resources or reserves, and the issuer is not treating the histor-
ical estimate has current mineral resources or reserves.
Mitchell Smith, President & CEO of Global Energy Metals commented:
"We are very pleased to announce this transaction to our shareholders. We have
a highly experienced cobalt focused management team that has identified an ex-
ceptional opportunity to acquire a quality asset with near term and future upside
potential. Mount Isa is in one of the world’s foremost base metal mining districts
having a rich and well-established mining history. We believe that Millennium
represents one of the best cobalt opportunities currently available not only in that
region but also globally. Millennium is an ideal first acquisition that fits into our
objective that includes the acquisition of additional high quality mining assets and
providing cobalt supply to our end user partners."
Alex Hewlett, Hammer's CEO and Director of Hammer stated:
"We are thrilled to have GEMC as a strategic partner and combine efforts to
develop Millennium. GEMC’s strong track record, deep cobalt sector knowledge
and key partnerships in Asian battery markets were key to our wanting to partner
with them. This transaction provides our shareholders with immediate upside in
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partnering with a cobalt focused leader in the industry while retaining exposure to
longer term value creation that the Millennium Project will offer."
Transaction Summary
The letter agreement outlines the principal terms and conditions to enter into a
three-year option to purchase a staged interest of up to 75% interest upon
making project related expenditures to further advance the property. Total
consideration for the option is CAD $2,700,000.
The Company plans to be on site in Australia to conduct a technical site visit in
mid-May 2017 and will conduct further due diligence to follow. Evaluation of
additional projects from an earlier trip to Australia will continue in parallel.
Completion of the agreement is expected within the next 90 days. Upon
successful conclusion of due diligence, and at the direction of GEMC, the parties
will enter into a definitive agreement, subject to standard conditions and any
regulatory approvals that may be required.
Before the third year anniversary of signing a definitive option agreement, GEMC
must expend a minimum of CAD $2,500,000 in project exploration and
development work on Millennium as follows:
• $500,000 within 6 months for 25% interest;
• $1,000,000 within 18 months for 65% cumulative interest; and
• $1,000,000 within 36 months for cumulative 75% interest
GEMC will also pay to Hammer a total of CAD $200,000 in cash in two equal
payments of $100,000, the first upon signing the definitive agreement and the
second on the 6 month anniversary of the first payment.
Global Energy Metals may exercise its right to acquire additional interest in
Millennium based on future terms agreed to by both parties at that time.
The Millennium Cobalt Project, Mount Isa, Australia:
The following property description and technical information in this news release
is historical in nature and is based on data and reports provided to the Company
by Hammer.
The Mount Isa Inlier is a highly mineralised, established mining jurisdiction with
significant regional infrastructure and several world-class copper-gold-cobalt and
lead-zinc-silver mines and deposits, including CuDeco Limited’s operating
Rocklands copper-gold-cobalt project located 19 kilometres to the northwest.
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The Project comprises five Mining Leases; ML’s 2512, 2761, 2762, 7506 and
7507. Hammer currently has a 100% interest in all five Mining Leases. The
tenements are in good standing with no known impediments.
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Most importantly, recent drilling and exploration to date has returned outstanding,
high-grade intercepts and there is excellent potential to build upon the historic
estimate as developed by Hammer. Based on previous work by Hammer and
others, mineralisation is interpreted to extend over a strike length of 1,600 metres
and extends to approximately 280 metres below surface. Multiple high-grade
targets are awaiting further exploration and the mineralised zone remains open at
depth and to the north along strike.
Hammer drilled a total of 23 RC holes and extended two previous holes at
Millennium in a late 2016 work program. The results build on previous drilling
conducted in the area and 40 drill holes were used in the first JORC (2012)
mineral resource estimate for the project.
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Future Progress
The Project presents as an excellent opportunity to acquire a cobalt asset of
significant size with potential to expand mineralisation in close proximity to a
processing solution and excellent infrastructure within the Mount Isa region of
Queensland, Australia. It is anticipated that GEMC will conduct further infill
drilling to tighten drill spacing and test for potential extensions at depth and along
strike, which the Company believes, could result in a material increase in the size
of the current JORC resource. This drilling should also enable continuity
modeling quality to be increased for each variable allowing for a higher
classification of Indicated or Measured under resource reporting standards for
resource estimates.
As the current resource model has been expressed on a CuEq basis and given
the current strength of the cobalt price and long-term positive fundamentals and
outlook for the cobalt market, GEMC will look to evaluate the deposit moving
forward with a more cobalt centric position.
Qualified Person 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.
Hammer Metals Ltd.
Hammer is listed on the Australian Stock Exchange (ASX code HMX) and is a
mineral exploration and development company focused on the exploration and
development of base and precious metal deposits in Australia.
Global Energy Metals Corporation (TSXV:GEMC)
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. GEMC anticipates growing its business by acquiring project
stakes in battery metals related projects with key strategic partners. Global Energy
Metals currently owns and is advancing the Werner Lake Cobalt Mine in Ontario,
Canada.
For Further Information:
Global Energy Metals Corporation
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: [email protected]
t. + 1 (604) 688-4219 extensions 236/237
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Cautionary Statement on Forward-Looking Information:
Certain information in this release may constitute forward-looking statements under
applicable securities laws and necessarily involve risks associated with regulatory
approvals and timelines. Although Global Energy Metals believes the expectations
expressed in such forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance and actual results or
developments may differ materially from those in the forward-looking statements. Except
as required by law, the Company undertakes no obligation to update these forward-
looking statements in the event that management’s beliefs, estimates or opinions, or
other factors, should change. For more information on Global Energy and the risks and
challenges of their businesses, investors should review the filings that are available at
www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts responsibility for the
adequacy or accuracy of this release.
We seek safe harbour.