Powered BY Cobalt … Driven BY Demand Global Energy Metals Signs Term Sheet with Metal Bank Limited to Advance Its Millennium Cobalt-Copper-GOLD Project IN Queensland, Australia
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GLOBAL ENERGY METALS SIGNS TERM SHEET WITH METAL BANK
LIMITED TO ADVANCE ITS MILLENNIUM COBALT-COPPER-GOLD
PROJECT IN QUEENSLAND, AUSTRALIA
Vancouver, BC / TheNewswire / June 7, 2021 / Global Energy Metals
CorporaTon TSXV:GEMC | OTC:GBLEF | FSE:5GE1 (“Global Energy Metals” ,
the “Company” and/or “GEMC”), a company involved in investment exposure
to the baGery metals supply chain, is pleased to announce that it has entered
into a binding Term Sheet with Metal Bank Limited (“Metal Bank” and/or
“MBK”) for a 6 month exclusive opWon (“OpWon”) in favour of MBK to earn-in
and joint venture the Millennium Copper, Cobalt and Gold Project in Mount
Isa, Queensland (“Millennium Project”) owned by GEMC’s wholly owned
subsidiary, Element Minerals Australia Pty Ltd (“EMA”).
The Millennium Project is an advanced exploraWon and development project
located in the Mount Isa region, 19km from the Rocklands copper-cobalt
project which is host to 55.4Mt of Resources grading 0.64%Cu, 0.15 g/t Au,
290ppm Co (0.90% CuEq)1. The Millennium Project holds an inferred 2012
JORC resource of 5.89MT @ 1.08% CuEq2 across 5 granted Mining Leases with
significant potenWal for expansion.
Highlights
•Global Energy Metals and Metal Bank Limited (ASX:MBK) have signed a
binding Term Sheet for a 6 month exclusive opGon for MBK to earn-in and
joint venture GEMC’s Millennium copper-cobalt-gold Project in Queensland;
•Millennium contains an inferred Cu equivalent Mineral Resource of 5.89MT2
with substanGal growth upside;
•Millennium presents as an excellent opportunity to advance and develop a
copper-cobalt asset of significant size in close proximity to processing
soluGons and excellent infrastructure in the Mount Isa region;
•During the proposed exclusive 6 month opGon period, MBK will undertake
further due diligence and sole-fund an iniGal exploraGon program;
•At the end of the OpGon Period, MBK will have the right to commence a
formal earn-in to the Project to earn up to an 80% interest; and
•The transacGon advances GEMC’s objecGves of moneGzing its exisGng
projects by unlocking unrealized value and advancing projects through
partner funded exploraGon; and
•GEMC retains project level exposure while diversifying its equity holdings in
a well managed company that is creaGng value through a combinaGon of
exportaGon success and quality project acquisiGon.
1CDU:ASX Announcement dated 31 October 2017
2 HMX ASX Announcement dated 6 December 2016 “Millennium Mineral Resource EsWmate” .
Copper equivalent (CuEq) calculaWon was based solely on commodity prices using prices as follows: Cu: US$4,600/t; Co: US$27,000/t; Au:
US$1,330/oz; and Ag: US$20/oz
Mitchell Smith, President and CEO of Global Energy Metals commented:
“Global Energy welcomes the opportunity to partner with Metal Bank to fund
a phased work campaign at our Millennium Cobalt-Copper-Gold project,
which presents as an excellent opportunity for successful explora Gon and
development of a highly prospecGve ba_ery metal project. AddiGonally , it
provides GEMC with con Gnued exposure to the project through both
maintained project level ownership and a sizeable equity interest in Metal
Bank.
Led by Inés Scotland, Guy Robertson, Sue-Ann Higgins and Rhys Davies, the
Metal Bank team has a track record of global success including several
discoveries that have proceeded to mine development and project sale
generaGng billions of dollars. This extensive experience, transacGonal know-
how and industry pedigree that will be put to use by the MBK team to
aggressively advance the Millennium project is a significant opportunity for
Global Energy Metals and its shareholders.”
CommenTng on the transacTon, Inés Scotland, MBK Chair said:
“Our agreement with GEMC provides MBK with an op Gon to earn-in to an
advanced copper-cobalt asset of significant size with excellent expansion
potenGal and an accelerated pathway to producGon.
The market fundamentals for copper and cobalt are extremely favourable and
we consider there is significant growth potenGal across the project area. We
are excited to be partnering on this project with GEMC, a company advancing
and building a diversified global pordolio of exploraGon and growth-stage
ba_ery mineral assets.
This transacGon is an exciGng opportunity for MBK and its shareholders in
pursuit of our strategy for diversificaGon and growth, providing exposure to
copper and cobalt which are in demand, vital components in the producGon of
electric ba_eries, in addiGon to our exisGng pordolio of gold assets in
Queensland.”
Commencement of the OpWon is subject to MBK and GEMC finalising and
signing a formal OpWon Agreement prior to 30 June 2021. GEMC have
granted MBK a right of exclusivity in relaWon to the Millennium Project for this
purpose, in consideraWon of MBK’s payment of AUD $10,000.
MBK will make a further AUD $10,000 payment to GEMC upon signing the
OpWon Agreement.
During the proposed Phase 1 exclusive 6-month op Won period, MBK will
undertake further due diligence and complete an iniWal exploraWon program
to confirm the potenWal for mineralisaWon in the northern half of the
tenement package.
At the end of the opWon period, MBK will have the right to commence a
formal earn-in to the Project to earn up to an 80% interest over Phases 2 and
3 below:
•Phase 2 – MBK to earn a 51% interest in the Project by issuing AUD
$250,000 of MBK Shares to GEMC and sole funding exploraWon expenditure
of $1M;
•Phase 3 – MBK to earn an addiWonal 29% interest (taking its total interest to
80%) by issuing AUD $350,000 of MBK Shares to GEMC and sole funding
expenditure of AUD $2M; and
•Phase 4 – GEMC may elect to require MBK to buy out GEMC’s remaining
20% interest for shares in MBK at a value to be agreed, and failing such
elecWon, both parWes are to fund expenditures in propor Won to their
respecWve interests.
The Term Sheet also includes a buy-out opWon at the end of Phase 2, allowing
MBK to acquire an addiWonal 29% (taking its total interest to 80%) for AUD
$1.5M of MBK Shares and AUD $1M in cash, with the joint venture then
proceeding immediately to Phase 4.
The terms of the Term Sheet are summarized in detail below.
Summary of Term Sheet
MBK has been granted a right of exclusivity from the date of the Term Sheet
to 30 June 2021 in consideraWon of the payment of AUD $10,000 to GEMC.
The right of exclusivity will extend through the OpWon Period following signing
of an OpWon Agreement.
During the iniWal period, MBK and GEMC will finalise an OpWon Agreement
and detailed earn-in and joint venture terms.
MBK’s exclusive opWon to earn-in and joint venture the Project will commence
upon signing the OpWon Agreement and payment of a further AUD $10,000
payment to GEMC, and will conWnue for a term of 6 months (OpWon Period).
During the OpWon Period MBK will complete the Phase 1 Work Program
described below.
On or before expiry of the OpWon Period, MBK may give noWce to GEMC
exercising the exclusive OpWon to earn-in and joint venture the Project and
move to Phase 2.
If MBK does not exercise the opWon then the agreement is at an end.
At the commencement of Phase 2, MBK issue the equivalent of AUD $250,000
in MBK shares to GEMC and MBK will sole fund explora Won expenditure of
AUD $1M on the Phase 2 Work Program described below to earn a 51%
interest in the project.
Upon compleWng its Phase 2 expenditure commitment, MBK may:
•elect to earn the 51% interest and either:
•form the joint venture and move to Phase 3;
•give noWce to buy-out 29% of GEMC’s remaining interest, with BMK
taking an 80% interest in the project in consideraWon of the payment
by MBK of AUD $1M and issue of AUD $1M of MBK shares to GEMC.
In the event such noWce is give the joint venture will be formed on an
80% MBK, 20% GEMC basis; or
•withdraw without earning any interest.
At the commencement of Phase 3, MBK issue the equivalent of AUD $350,000
in MBK shares to GEMC and a Joint Venture will be formed with MBK sole
funding and managing. During Phase 3, MBK will sole fund explora Won
expenditure of AUD $2M on the Phase 3 Work Program described below to
earn an addiWonal 29% interest in the project, taking MBK’s total interest to
80%.
Upon MBK compleWng its Phase 3 expenditure commitment and moving to an
80% interest, EMA may elect to require MBK to buy out EMA’s remaining 20%
interest for shares in MBK at a value to be agreed.
If EMA does not make this elecWon, both parWes will jointly fund exploraWon,
feasibility and development expenditure in their proporWonate shares, with
each parWes’ interest diluted in accordance with a standard industry diluWon
formula should either MBK or GEMC not contribute.
Proposed MBK OpTon, Earn-in and JV Work Programs
Note: Work programs are indicaGve and may change subject to exploraGon
results.
Phase 1 – OpTon Period
•detailed geological mapping
•infill pXRF soil survey (25m spacing) and mapping to refine drilling locaWons
•reconnaissance drilling up to 4 reverse circulaWon (“RC”) holes (2 secWon
lines) for up to 500m at Millennium North
Phase 2 - Earn-in – Resource and exploraTon drilling
•Millennium Resource
•2 x deep down dip extension test holes – for 600m (RC/DD)
•6 x resource infill holes – for 900m (RC/DD)
•Millennium North
•14 holes on 7 secWon lines at 100m spacing – 2,800m (RC)
•Federal/Corella Trend
•early reconnaissance exploraWon - up to 4 x RC holes for up to 600m
(RC)
Phase 3 - Joint Venture – Resource upgrade and commencement of
feasibility study
•Millennium Resource upgrade (drill-out) – up to 2,500m Diamond drilling
•Update Mineral Resource EsWmate
•Commencement of feasibility study
Phase 4 – Joint Venture
•CompleWon of bankable feasibility study
•Development approvals
•Development
•Mining
The Millennium Project
The Millennium Project is a significant advanced copper-cobalt-gold project
with a large defined zone of copper-cobalt mineralisaWon that remains open
for expansion at depth and along strike. Copper-cobalt mineralisa Won is
associated with shear zones hosted within a sequence of volcanic and
sedimentary units.
The Millennium Project is strategically located on granted mining leases, less
than 20 km from the Rocklands mine site and processing facility and within
the economic and infrastructure hub of Mount Isa, Queensland. The Mt. Isa
Mineral Province is recognized as a world-class mining region, with more than
a quarter of the world’s lead and zinc reserves, 5% of the world’s silver
resources and 1.5% of the world’s copper resources.
In 2017 and 2018, GEMC conducted a 10-hole, 1,141 metre drilling campaign
on the Millennium Project to test the up-dip con Wnuity at the Millennium
North deposit and confirm historical esWmates of cobalt mineralizaWon
reported in 2016 by Hammer Metals. The program was successful in both
duplicaWng historical results, demonstraWng the conWnuity of mineralisaWon
within the mineralised zone and in determining mineralisaWon conWnues to
depth, including 28m @0.35% Cu and 0.2% Co (MIRC026). Significantly, cobalt
and copper mineralisaWon was encountered along the enWre targeted 1,500
metre strike length with the zones remaining open in all direcWons.
Mapping, soil geochemistry and rock sampling conducted by GEMC idenWfied
an addiWonal 1.5 km of anomalous cobalt-copper mineralisaWon in geological
analogues that occur along a potenWal strike extension in the northern half of
the tenement package (“Northern Extension”). This area has no previous
drilling to date and provides an excellent opportunity to increase the overall
resource potenWal of the Millennium Project. The Millennium mining leases
also include the Corella and Federal prospects, along a parallel zone of
significant surface Cu-Co-Au anomalism and historical workings, that are
untested by drilling and provide yet further potenWal to grow the resource
base (Figure 1).
Figure 1. Map showing exisGng Millennium resource zone and exploraGon
targets
Rock chip sampling was also conducted by GEMC to test for addiWonal zones
of cobalt and copper mineralisaWon along the Millennium trend and in parWc-
ular the Northern Extension where similar host rock units and strong soil geo-
chemical anomalies are located. This zone is located approximately 1 kilome-
tre north of the current Millennium Resource as defined. The conWnuaWon of
elevated soil arsenic and copper geochemistry and presence of anomalous
cobalt and copper in rock chip samples and analogous geology between the
Millennium Resource area and the Northern Extension indicate that this area
is a priority target for further invesWgaWon.
GEMC also conducted iniWal metallurgical testwork on the Millennium Project
in 2018, reporWng cobalt and copper recoveries exceeding 95%.
Fore more informaWon on the Millennium Project please refer to the
Company’s website: h Gps://www.globalenergymetals.com/projects/
millennium-cobalt-project/
Metal Bank Limited
Metal Bank Limited is an ASX-listed minerals exploraWon company (ASX:MBK).
Metal Bank’s core focus is creaWng value through a combinaWon of exploraWon
success and quality project acquisiWon. The company’s key projects are the 8
Mile and Eidsvold gold projects situated in the northern New England Fold
Belt of central Queensland, which also hosts the Cracow (3 Moz Au), Mt
Rawdon (2 Moz Au), Mt Morgan (8 Moz Au, 0.4Mt Cu) and Gympie (5 Moz Au)
gold deposits. The projects are both associated with historical goldfields and
represent intrusion related gold systems (IRGS) with mul W-million-ounce
upside.
The Company has an experienced Board and management team which brings
regional knowledge, experWse in early stage explora Won and project
development, relevant experience in the mid cap ASX-listed resource sector
and a focus on sound corporate governance.
The Company is commiGed to a strategy of diversificaWon and growth through
idenWficaWon of new exploraWon opportuniWes which complement its exisWng
porrolio and pursuit of other opportuniWes to diversify the Company’s assets
through acquisiWon of advanced projects or cash-flow generaWng assets to
assist with funding of the exploraWon porrolio.
In pursuit of this strategy, the Company is ac Wvely reviewing new
opportuniWes within Australia with a number of third par Wes under
confidenWality arrangements. In addiWon, the Company is conWnuing to work
with government and stakeholders in the MENA region with a view to
securing an advanced copper exploraWon project.
Qualified Person
Mr . Paul Sarjeant, P . Geo., is the qualified person for this release as defined by
NaWonal Instrument 43-101 - Standards of Disclosure for Mineral Projects.
Global Energy Metals Corporation
(TSXV:GEMC | OTC:GBLEF | FSE:5GE1)
Global Energy Metals Corp. o ffers investment exposure to the growing
rechargeable ba_ery and electric vehicle market by building a diversi fied
global pordolio of exploraGon and growth-stage ba_ery mineral assets.
Global Energy Metals recognizes that the prolifera Gon 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 Gon and respond to this electri ficaGon
movement, Global Energy Metals has taken a ‘consolidate, partner and invest’
approach and in doing so have assembled and are advancing a por dolio 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
invesGng-in, exploring and developing prospec Gve, scaleable assets in
established mining and processing jurisdicGons in close proximity to end-use
markets. Global Energy Metals is targeGng projects with low logisGcs and
processing risks, so that they can be fast tracked to enter the supply chain in
this cycle. The Company is also collabora Gng with industry peers to
strengthen its exposure to these cri Gcal commodiGes and the associated
technologies required for a cleaner future.
Securing exposure to these criGcal minerals powering the eMobility revoluGon
is a generaGonal investment opportunity. Global Energy Metals believe the the
Gme to be part of this electrificaGon movement.
For Further InformaTon:
Global Energy Metals CorporaWon
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: [email protected]
t. + 1 (604) 688-4219
www.globalenergymetals.com
TwiGer: @EnergyMetals | @USBaGeryMetals | @ElementMinerals