Global Energy Metals Invests IN Lithium; Enters Agreement to Acquire Royalty and Option ON Alberta-Based Lithium Brine Project
GLOBAL ENERGY METALS INVESTS IN LITHIUM; ENTERS AGREEMENT TO
ACQUIRE ROYALTY AND OPTION ON ALBERTA-BASED LITHIUM BRINE PROJECT
Vancouver, BC / TheNewswire / February 4, 2025 / Global Energy Metals Corpora Ron
TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 (“Global Energy Metals” , the “Company” and/or
“GEMC”), a mul’-jurisdic’onal, mul’-commodity cri’cal mineral explora’on and development
company focused on growth-oriented metal projects suppor’ng the global transi’on to clean
energy, is pleased to announce, subject to TSX Venture Exchange approval, that it has entered
into a non-binding LeBer of Intent (the “Agreement”) with NeoLithica Ltd. (“NeoLithica”) to
acquire an eighteen month op’on to acquire a 19.9% interest and a 1% Net Smelter Return
(“NSR”) royalty over NeoLithica’s Peace River Lithium Project (the “Project”).
NeoLithica is an emerging lithium resource development company that plans to incorporate
innova’ve direct lithium extrac’on (“DLE”) and refining technologies to produce baBery-grade
lithium compounds in support of Canada’s cri ’cal mineral supply chain. The Company is
headquartered in Calgary, Alberta.
HIGHLIGHTS:
• The global push for decarbonisa’on has placed lithium at the forefront of the clean
energy transi’on with lithium brine projects emerging as a promising solu’on to meet
the growing demand for baBery-grade lithium while enhancing energy independence
amid rising geopoli’cal uncertain’es.
• The lithium mining market is projected to grow from $10.96B in 2024 to $29.5B by 2032,
fuelled by a 13.18% CAGR during the forecast period.
• NeoLithica has assembled a large con’guous mineral tenure posi’on in Alberta’s Peace
region that features well developed produc’on infrastructure.
• NeoLithica completed its Na’onal Instrument 43-101 (“NI 43-101”) Technical Report,
which includes an inferred mineral resource es’mate of 10 million tonnes of lithium
carbonate equivalent (LCE), at an average grade of 70.0 mg/L.
• On closing of the transac’on, Global Energy will be granted an eighteen month op’on to
acquire 19.9% in and a 1% NSR royalty over NeoLithica’s Peace River Lithium Project.
• In considera’on for the NSR and the eighteen month op’on, GEMC will issue, subject to
Exchange approval, two million shares at a deemed price of CAD $0.05 per share to
NeoLithica and pay immediately $10,000 in cash.
• In order to exercise the op’on, GEMC will, by the eighteenth month, pay to NeoLithica
$1.5M as a combina’on of cash and shares, as agreed to by both par’es at that ’me, at a
minimum deemed issue price.
• NeoLithica will remain as operator of the Project and will maintain and keep the Project
in good standing.
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• Working with NeoLithica, Global Energy will further evaluate op ’ons for the project
including the securing of a strategic opera’onal partner to apply their technical and
jurisdic’onal exper’se to advance this key North American lithium project and solidifying
the Project’s role in Canada's cri’cal minerals supply chain.
Pursuant to the Agreement, Global Energy Metals has secured an op ’on to acquire (the
“Op’on”) from NeoLithica within a eighteen (18) month period a 19.9% interest in and a 1%
NSR royalty over NeoLithica’s Peace River Lithium Project. The Project is located in the Peace
River region of northwest Alberta and features 377,508 hectares (1,458 square miles) of prime
lithium-brine hosted mineral licenses overlying several highly produc’ve lithium-rich aquifers
that stretch along a 165 kilometre fairway and hosts an inferred mineral resource es’mate of 10
million tonnes of lithium carbonate equivalent (LCE), at an average grade of 70.0 mg/L. Please
refer to the NI 43-101 compliant resource es’mate hosted on the NeoLithica website.
Mitchell Smith, CEO & Director comments:
“The accelerated global shi0 towards clean energy solu5ons con5nues to shine a spotlight on
sustainable and cost-effec5ve mineral extrac5on methods, and lithium brine projects are
emerging as a promising solu5on to meet the growing demand for ba?ery-grade lithium while
enhancing energy independence amid rising geopoli5cal uncertain5es.
Taking a non-opera5ng interest op5on and royalty on a highly prospec5ve lithium brine asset
offers excellent op5onality against a realis5c current background of depressed lithium pricing
and global cost infla5on. We see Peace River as an important Canadian project that has the
poten5al to be a strategic source of lithium as the global supply chain rebalances over 5me,
driven by the growing cri5cality of locally sourced, ethically produced lithium needed to support
the energy transi5on.
We look forward to this collabora5on with NeoLithica and are encouraged by the addi5on of a
promising lithium asset to Global Energy’s exis5ng project, equity and royalty porMolio that
provides our shareholders investment exposure to new energy metals cri5cal to an electrified
future.”
Barry Caplan, President of NeoLithica comments:
“Global energy will be a valuable partner and help evaluate op 5ons for NeoLithica and work
with us in securing a strategic opera5onal partner to apply their technical and jurisdic5onal
exper5se to advance this North American lithium project when demand for lithium surges,
driven primarily by the electric vehicle revolu5on and the growing need for renewable energy
storage systems.”
KEY TERMS OF ACQUISITION
As considera’on for the Acquisi’on, GEMC will secure the op’on my making an immediate non-
refundable cash payment of CAD $10,000 to be used for tes’ng of brine from the Project and,
upon TSX Venture Exchange (the “TSXV”) approval (the “Effec’ve Date”), issuing CAD $100,000
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of common shares in the capital of GEMC (the "Payment Shares") at a deemed value of $0.05/
share for a total of 2,000,000 shares in GEMC.
If the Op’on remains unexercised on the twelve-month anniversary of the E ffec’ve Date,
NeoLithica is en’tled to a cash payment of CAD $100,000.
The op’on to acquire is exercisable at GEMC’s elec’on on or before the eighteenth (18) month
anniversary of the Effec’ve Date, for addi’onal considera’on of CAD $250,000 cash payment
and, at GEMC’s discre’on, CAD $1,250,000 in cash and/or common shares of GEMC at the
greater of i) the 5-day volume weighted average price one business day prior to the date that
the TSXV provides approval of the exercising of the Op’on; or ii) at a deemed floor value of
$0.075/share.
The transac’on contemplated above is a “Non-Arms’ Length” transac’on in accordance with
applicable securi’es legisla’on, as Mitchell Smith is a director of both GEMC and NeoLithica.
Mr . Smith has declared his conflict to the boards of both companies, and abstained from vo’ng
on the transac’on.
The TSXV has in no way passed upon the merits of the proposed transac ’on and has neither
approved nor disapproved the contents of this news release.
PROJECT OVERVIEW
The Peace River Project features thick, extensive, and highly-produc’ve lithium-brine aquifers
associated with carbonate reef buildups in the Leduc Forma’on of the Devonian Woodbend
Group. Access to the Leduc Forma ’on aquifer brine at the Peace River property will be
undertaken by drilling and comple’ng wells to pump the brine from depths of approximately
2,250 m. Once the lithium is extracted, the brine will be injected back down into an overlying
porous aquifer .
The Peace River Project consists of 50 con’guous lithium-brine hosted licenses issued by the
Alberta Energy Ministry that overlie the thick Leduc Forma ’on fringing reef, and overlying
Wabamun Forma’on that were deposited in a shallow inland sea along the emergent Peace
River Arch. All permits are held 100% by NeoLithica Ltd. and currently the Project is comprised
of a total area of 377,508 hectares (1,458 square miles).
The Wabamun Forma’on, that overlies the Leduc, is also a poten’al source of lithium-brine
with similar chemistry as the Leduc and may be added to NeoLithica’s NI 43-101 resource
es’ma’on in the near future.
NeoLithica’s permits lie on the eastern flank of the Peace River Arch, a prominent basement
structure that controlled the loca’on and massive growth of the porous brine-filled carbonate
reefs during the Devonian period.
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The thick and widespread Woodbend reefs that fringe the Peace River Arch, and the underlying
Beaverhill Lake plakorm carbonates have produced large volumes of oil and gas, in addi’on to
massive amounts of forma’on water (brine). These stacked lithium-rich aquifers reach up to
300 metres in thickness.
Aler separa’on of the produced oil and gas from the forma ’on waters (brine), the lithium-
voided brine is disposed of by re-injec’ng it back into an overlying forma’on, which avoids
dilu’ng the lithium concentra’on in the primary producing zones.
NeoLithica has conducted a detailed geologic study within its project area, which served as the
founda’on for its Na’onal Instrument 43-101 technical report.
Figure 1. The Peace Region in Alberta is home to signi ficant oil and gas produc5on and well
developed infrastructure that can be leveraged to accelerate commercial lithium development.
NeoLithica has developed a two-stage pre-commercializa’on plan designed to rapidly place the
company on the global stage as a sustainable producer of this cri’cal electric metal extracted
from brine in Alberta’s oil and gas reservoirs.
The first stage of pre-commercial development was completed in 2023, and comprised resource
defini’on and NI 43-101 compliance repor ’ng, refining the database of exis’ng well and
pipeline infrastructure, expanding the company’s mineral tenure, environmental scoping and
stakeholder consulta’ons.
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NeoLithica plans to commission a Preliminary Economic Assessment (PEA) a ler conduc’ng
several demonstra’on pilots in early 2025, and upgrade the extracted lithium concentrate to
produce baBery-grade lithium compounds to seed to poten’al global buyers.
The third stage of development will be focused on drilling up to two brine wells in 2025 to
perform reservoir engineering evalua’ons to determine the ul ’mate producibility of the
Wabamum, Leduc and Granite Walsh forma’ons, and the injec’vity of the overlying Belloy
Forma’on. The wells will also provide the source of brine needed to conduct a pre-commercial
demonstra’on pilot to determine the most effec’ve way to integrate its selected DLE plakorm
within an op’mized brine produc’on infrastructure. Aler the scaled demonstra’on program is
completed, NeoLithica will develop its aquifer management plan and commission a Pre-
feasibility Study (PFS).
The results of the above project development, conducted by the team at NeoLithica, its
technology partners and industry experts, will de-risk the Peace River Lithium Project and lead
to Final Investment Decision.
Global Energy is relying on the informa’on provided by NeoLithica Ltd.
Qualified Person
Mr . Paul Sarjeant, P . Geo., is the qualified person for this release as de fined by Na’onal
Instrument 43-101 - Standards of Disclosure for Mineral Projects. He is a shareholder and
Director of the Company.
For Further InformaRon:
Global Energy Metals Corpora’on
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: [email protected]
t. + 1 (604) 688-4219
www.globalenergymetals.com
TwiBer: @EnergyMetals | @USBaBeryMetals | @ElementMinerals
Global Energy Metals CorporaRon
(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals Corp. offers investment exposure to the growing rechargeable ba?ery and
electric vehicle market by building a diversified global porMolio of explora5on and growth-stage
ba?ery mineral assets.
Global Energy Metals recognizes that the prolifera5on and growth of the electrified economy in
the coming decades is underpinned by the availability of ba?ery metals, including cobalt, nickel,
copper, lithium and other raw materials. To be part of the solu 5on and respond to this
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electrifica5on movement, Global Energy Metals has taken a ‘consolidate, partner and invest’
approach and in doing so have assembled and are advancing a por Molio of strategically
significant investments in ba?ery metal resources.
As demonstrated with the Company’s current copper, nickel and cobalt projects in Canada,
Australia, Norway and the United States, GEMC is inves 5ng-in, exploring and developing
prospec5ve, scaleable assets in established mining and processing jurisdic5ons in close proximity
to end-use markets. Global Energy Metals is targe5ng projects with low logis5cs and processing
risks, so that they can be fast tracked to enter the supply chain in this cycle. The Company is also
collabora5ng with industry peers to strengthen its exposure to these cri5cal commodi5es and
the associated technologies required for a cleaner future.
Securing exposure to these cri 5cal minerals powering the eMobility revolu 5on is a
genera5onal investment opportunity. Global Energy Metals believes Now is the Time to be part
of this electrifica5on movement.
CauRonary Statement on Forward-Looking InformaRon:
Certain informa5on in this release may cons5tute forward-looking statements under applicable
securi5es laws and necessarily involve risks associated with regulatory approvals and 5melines.
Although Global Energy Metals believes the expecta5ons expressed in such forward-looking
statements are based on reasonable assump5ons, such statements are not guarantees of future
performance and actual results or developments may di ffer materially from those in the
forward-looking statements. Except as required by law, the Company undertakes no obliga5on
to update these forward-looking statements in the event that management’s beliefs, es5mates
or opinions, or other factors, should change.
GEMC’s opera5ons could be significantly adversely affected by the effects of a widespread
global outbreak of a contagious disease, including the recent outbreak of illness caused by
COVID-19. It is not possible to accurately predict the impact COVID-19 will have on opera5ons
and the ability of others to meet their obliga 5ons, including uncertain5es rela5ng to the
ul5mate geographic spread of the virus, the severity of the disease, the dura 5on of the
outbreak, and the length of travel and quaran 5ne restric5ons imposed by governments of
affected countries. In addi5on, a significant outbreak of contagious diseases in the human
popula5on could result in a widespread health crisis that could adversely affect the economies
and financial markets of many countries, resul5ng in an economic downturn that could further
affect opera5ons and the ability to finance its opera5ons.
For more informa5on 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 Regula5on 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.
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We seek safe harbour.