Powered BY Cobalt … Driven BY Demand Global Energy Metals Announces Signing of Agreement to Take Accelerated Ownership Stake IN the Lovelock and Treasure Box Battery Mineral Projects IN Nevada
TSX.V GEMC
www.globalenergymetals.com
Suite 1501,
Sun Tower
128 West Pender St. Vancouver,
BC
V6B 1R8
T +1.604.688.4219
TwiGer @EnergyMetals
Powered by Cobalt … Driven by Demand
GLOBAL ENERGY METALS ANNOUNCES SIGNING OF
AGREEMENT TO TAKE ACCELERATED OWNERSHIP
STAKE IN THE LOVELOCK AND TREASURE BOX
BATTERY MINERAL PROJECTS IN NEVADA
Vancouver, BC / TheNewswire / April 7, 2020 / Global Energy Metals
Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 (“Global Energy
Metals”, the “Company” and/or "GEMC") is pleased to announce that it
has successfully negoNated and entered into an agreement (the “Agreement”)
with Nevada Sunrise Gold Corp. (“Nevada Sunrise”) and Primus Resources L.C.
(“Primus”) pursuant to which Global Energy Metals will accelerate and acquire
an ownership interest in the Nevada-based Lovelock and Treasure Box baGery
minerals projects (the “Property”). This Agreement will replace and supersede
the original opNon agreement made as of January 15, 2019 pursuant to which
Nevada Sunrise granted to Global Energy Metals an opNon to purchase an
undivided 85% interest in the Property.
The Agreement provides Global Energy with a controlling interest over the
Property earlier than planned in the previous earn-in agreement, empowering
GEMC to explore and develop the asset in a Nmely and expedited manner but
without the project expenditure outlay and strict Nmelines originally
contemplated.
Mitchell Smith, President & CEO commented:
“Now, more than ever, companies need to adopt to survive the unprecedented
and rapidly changing environment we all find ourselves in. For us that means
con;nuing to move forward.”
“As a shareholder-aligned management team with significant investment
exposure in the company, we see opportuni;es to further op;mize our
business around our core assets while providing our shareholders exposure to
one of the fastest growing megatrends - Vehicle Electrifica;on & Energy
Storage - through our porGolio of baHery mineral projects located in safe, pro-
mining jurisdic;ons.”
“An accelerated ownership stake in the Nevada-based projects provides the
Company and its shareholders with high-poten;al, growth-stage explora;on
projects in a well established mining district. Addi;onally it provides the
founda;on to break free from the over-reliance of cri;cal material imports
from China and other compe;ng na;ons and instead develop a domes;c
supply of baHery metals cri;cal to sustain our na;onal and economic
security.”
Main Terms of the Accelerated Ownership Agreement
Upon the saNsfactory compleNon of certain closing condiNons, the
accelerated ownership Agreement provides, among other things, that Global
Energy Metals will purchase an 85% interest in the Property, with Nevada
Sunrise retaining a 15% in the Property, subject to a 2% net smelter royalty in
favour of Primus provided for in the underlying opNon agreement between
Primus and Nevada Sunrise. A joint venture between Global and Nevada
Sunrise will be formed to further explore and develop the Property.
In consideraNon for the entering into of this Agreement and for the
accelerated transfer of the Property to as to an undivided 85% interest and
Nevada Sunrise as to an undivided 15% interest, Global Energy Metals shall on
Closing:.
1.Pay to Primus the sum of USD $35,000 ( the “Cash Payment”);
2.Issue to Primus 1,000,000 Common Shares of Global (aeer giving effect to
Global’s recently announced share consolidaNon which is not yet in effect),
at the deemed price of CDN $0.10 a share; and
3.Issue to Nevada Sunrise 750,000 Common Shares of Global (aeer giving
effect to Global’s recently announced share consolidaNon which is not yet
in effect), at the deemed price of CDN $0.10 a share and forego the
originally contemplated exploraNon expenditures of USD $1 million.
The Shares issued to Primus and Nevada Sunrise will be subject to voluntary
escrow provisions in addiNon to applicable statutory and Exchange imposed
hold periods.
Upon the earlier of 1 year or CDN $1 million of project expenditures incurred
by Global Energy Metals, both Global Energy Metals (85%) and Nevada
Sunrise (15%) would fund joint venture expenditures pro rata to their joint
venture interest or be diluted to a 1% Net Smelter Royalty (“NSR”). The NSR
can be repurchased by either party for CDN $1 million.
Primus will maintain its current NSR on the Nevada Projects being 2% with
Global Energy Metals having the right, exercisable at any Nme, to purchase up
to 50% of the Royalty granted to Primus by payment to Primus of $1,500,000
subject to a protecNon hedge against inflaNon of the U.S. Dollar, using an
agreed upon price of $3.25 per pound copper . Upon payment of $1,500,000
or the cash value of 462,000 (four hundred, sixty two thousand) pounds of
copper, whichever value is greater at the Nme of the purchase of half of the
Royalty, the Royalty shall be reduced to 1% of Net Smelter Returns.
Figure 1. Loca;on Map of Lovelock and Treasure Box Projects in Nevada, USA
About Lovelock
The Property currently consists of 81 unpatented lode claims in the
CoGonwood Canyon area of the SNllwater Range totaling approximately 642
hectares. It was discovered by George Lovelock and Charles Bell about 1880.
According to U.S. Government annual reports, the Lovelock Mine saw limited
producNon of nickel, copper and cobalt beginning in 1883. The primary cobalt
mineral was idenNfied as “cobalNte”. 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 1885” , 1886). The mine operated
from 1883 to 1890 to the 100 foot level, reporNng 500 tons of cobalt and
nickel mineralized material shipped to England for processing. Aeer
intermiGent producNon, an English company aGempted smelNng on site in
1898 but liGle or no producNon was made. No further producNon from the
Lovelock Mine is known for well over a century. Results from Global Energy
Metals’ iniNal program in 2019 at the baGery minerals project in Nevada
confirmed the potenNal of the overall land package and indicated
considerable promise. Given the scale and prospecNve nature of this baGery
minerals discovery, unlocking value from Lovelock and Treasure Box will be
the primary focus of the company’s 2020 exploraNon plan. The iniNal work
program conducted in 2019 focused on defining structural controls in the
known baGery metal-rich areas. Results of this work proved successful in
defining structures and connecNng mineralized zones into broader targets in
preparaNon for an inaugural drilling program. Given the very large exploraNon
area, producing a property-wide geological interpretaNon and model of the
structures and mineralizaNon is an immediate priority and integral to a 2020
drill program. CompilaNon of historic data and recently completed work
should lead to a beGer understanding of the controls of mineralizaNon and
allow the Comapany to unlock the cobalt, nickel and copper potenNal from
GEMC’s Nevada-based projects. The Company will focus its exploraNon
program in the area central to the past-producing Lovelock Mine and will
commence a first-ever drilling program to test the extent of mineralizaNon. If
assay results are encouraging then it is expected that addiNonal holes will be
drilled to test strike extent.
About Treasure Box
Treasure Box hosts mine workings from limited copper producNon, which
occurred unNl early into the 20th century. A historical diamond drill hole (circa
1910) drilled at the Treasure Box by the Boyer-Nevada Copper Company
reportedly intersected 1.52% copper over 85 feet (25.9 metres) with
mineralizaNon beginning at surface. A reverse circulaNon hole drilled on the
Treasure Box by Utah InternaNonal in 1976 returned 1.55% copper over 40
feet (12.2 metres) from a depth of 85 to 125 feet (25.9 to 38.1 metres) and
reportedly stopped in chalcopyrite mineralizaNon. The core Treasure Box
claims were held conNnuously for over 20 years by a private company but
were relinquished in September 2017, leading to their acquisiNon by Nevada
Sunrise and now Global Energy Metals. Historic work and the prospecNve
nature of the project provides Global Energy Metals with an excellent
opportunity to unlock the potenNal value of the deposit through further
exploraNon work.
The Company also wishes to announce that effecNve immediately,
Christopher Ecclestone will resign as a member of Company’s Board of
Directors. Mr . Ecclestone has agreed to carry on with the Company as an
advisor and will conNnue to idenNfy and pursue new opportuniNes as part of
the the Company’s commitment to operaNonalize a clear acNon plan for
criNcal mineral supply chain security through re-use and upcycling
opportuniNes.
Qualified Person
Mr . Paul Sarjeant, P . Geo., is the qualified person for this release as defined by
NaNonal Instrument 43-101 - Standards of Disclosure for Mineral Projects and
has reviewed and verified the technical informaNon contained herein.
Global Energy Metals Corporation
(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals provides investors and partners with exposure to the
immediate need for metals criNcal to the new energy economy by building a
diversified global pormolio of cobalt and baGery metals rich projects in top-
Ner mining jurisdicNons with exploraNon & development upside to become a
supply chain soluNon to safe and reliable cobalt for downstream partners.
Global Energy Metals holds 100% of the Millennium Cobalt Project and two
neighbouring discovery stage exploraNon-stage cobalt assets in Mt. Isa,
Australia. It also currently owns 70% of the Werner Lake Cobalt Mine in
Ontario, Canada and has entered into an agreement to acquire an 85%
interest in two cobalt-nickel-copper exploraNon projects in Nevada, 150km
East of the Tesla Gigafactory.
For Further Information:
Global Energy Metals CorporaNon
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: [email protected]
t. + 1 (604) 688-4219 extensions 236/237
TwiGer: @EnergyMetals
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.