Powered BY Cobalt … Driven BY Demand Global Energy Metals Announces Offtake Agreement FOR Werner Lake Cobalt Project with Chinese Battery Cathode Manufacturer
TSX.V GEMC
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GLOBAL ENERGY METALS ANNOUNCES OFFTAKE
AGREEMENT FOR WERNER LAKE COBALT PROJECT WITH
CHINESE BATTERY CATHODE MANUFACTURER
Vancouver, BC / TheNewswire / November 14, 2018 / Global Energy
Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1
(“Global Energy Metals”, the “Company” and/or "GEMC") is pleased
to report that partner Marquee Resources Limited (“Marquee”) has
entered into a non-binding Memorandum of Understanding (“MoU”)
regarding a cobalt-copper offtake agreement for the Werner Lake
Cobalt project (“Werner Lake” and/or the “Project”) with Zhejiang
Meidu Haichuang Lithium Battery Technology Co. (“China Hitrans”), a
subsidiary of Shanghai Stock Exchange listed Meidu Energy Co. Ltd.
(Code 600175). Global Energy Metals currently owns a 70% interest in
the Project.
Highlights:
•Non-binding Cobalt-Copper Offtake Agreement for Marquee’s
interest in the Werner Lake Sulphide Cobalt project signed with
Zhejiang Meidu Haichuang Lithium Battery Technology Co. Ltd.
•China Hitrans is one of the most significant Chinese operating
enterprises involved in the manufacturing of battery cathode
materials.
•China Hitrans is ranked highly in the Chinese cathode material
manufacturing community.
•Negotiations underway for a Formal Offtake agreement with China
Hitrans by Marquee.
•Marquee will provide China Hitrans with a metallurgical sample for
independent testing within the next 3 months and China Hitrans will
work together with Marquee to design the best products to be the
potential feed of China Hitrans.
•Currently Marquee has an interest in 30% of the Werner Lake deposit
and as such this proposed agreement would only apply to this
interest.
•Further Werner Lake drill results expected shortly.
China Hitrans is a high-tech enterprise that develops, produces and
sells ternary cathode materials and ternary precursors of lithium
battery. Further information on China Hitrans can be found at the end
of this announcement.
Preparations are underway for Marquee to provide China Hitrans with
a metallurgical product sample for independent testing within the
next 3 months. China Hitrans will conduct lab scale research on the
best products Marquee can produce out of its cobalt projects. During
this time Marquee will commence negotiations to enter into a formal
binding offtake agreement for the sale and purchase of any Werner
Lake product.
This agreement follows a previous announcement confirming that the
stage one expenditure commitment of $1,000,000 has been reached
by Marquee and as such, they have now met the requirements to earn
their initial 30% interest in the Project.
The multi-phase Werner Lake exploration program is part of a $2.5
million commitment to advance the project and is being solely funded
by Marquee for their earn-in of up to 70% interest in the Project.
Private Placement:
On September 20th, Global Energy Metals announced a $500,000
Private Placement with net proceeds being used for the completion of
the recently announced cobalt project acquistions, for marketing
initiatives as well as general working capital requirements.
The Private Placement will consist of the issuance of a maximum of
6,666,667 units (the “Units”) at a subscription price of CAD$0.075 per
Unit. Each Unit will be comprised of one common share of the
Company (a “Share”) and one transferable common share purchase
warrant (a “Warrant”). Each Warrant will be exercisable to purchase
an additional Share of the Company for a period of 12 months from
the closing date (“Closing Date”) at a price of CAD$0.15 subject to
acceleration.
All securities issued in connection with the Private Placement will be
subject to a statutory hold period of 4 months plus a day from the
Closing Date in accordance with applicable securities legislation.
Warrants are subject to an acceleration clause whereby if on any 10
consecutive Trading Days occurring after four months and one day has
elapsed from the Closing Date, the daily volume weighted average
trading price of the common shares of the Company is at least $0.20
per share, the Company may accelerate the expiry date of the
Warrants to the 30th day after the date on which the Company gives
notice to the Subscriber in accordance with the Warrant of such
acceleration. Finder's fees may be paid in connection with this
Offering. Closing of the Private Placement is subject to the approval
of the TSXV .
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.
Zhejiang Meidu Haichuang Lithium Battery Technology Co., Ltd.
("China Hitrans")
China Hitrans was established in December 2015 and is a holding
subsidiary of Meidu Energy Co. Ltd. (stock code 600175). The company
is located in Shangyu economic and technological development zone,
Hangzhou Bay, Zhejiang Province, the south wing of the Yangtze River
Delta, the most economically developed area in China.
The company occupies an area of 300 acres and has more than 250
employees. In 2017, it achieved an operating income of 470 million
yuan, and successfully succeeded in the top 100 industrial enterprises
of the economic and technological development zone. The sales
volume of the products jumped to the top 10 in China, and won the
two awards of “Top 10 Brands of Power Lithium Battery Cathode
Materials in China” and “2017 Most Investment Value Award of Lithium
Battery in China”.
As an important part of Meidu Energy Co. Ltd.'s layout of new energy
industry chain, the company has formed a complete industrial chain
of “upstream raw materials – nickel-cobalt-manganese ternary
precursor – nickel-cobalt- manganese ternary cathode materials –
downstream power lithium battery”. It integrates raw material
supply, research and development, production and sales.
The company has established its own research institutes. It has
received more than 20 patents and granted patents. While enhancing
its own R&D capabilities, it has established a long-term strategic
partnership with Zhejiang University, Zhejiang University of
Technology, and Ningbo Institute of Materials of the Chinese Academy
of Sciences based on domestic and international market demand. The
company has developed a series of high-quality products, and has
formed a multi-level product structure led by lithium battery ternary
precursor (nickel-cobalt-manganese precursor , nickel-cobalt-
aluminum precursor , nickel-cobalt precursor), lithium battery ternary
cathode material (Lithium nickel cobalt manganese oxide, Lithium
nickel cobalt aluminum oxide). The products include polycrystalline
and single crystal NCM111, NCM523, NCM622, NCM811, NCA and other
models. The product range covers electric vehicles, power tools, high-
end digital products, energy storage and other fields.
The company has won a number of strategic customers by the high-
tech content and stable quality of the product, and good service.
With the continuous expansion of the application fields of new energy
and new materials, the company has adapted to the market demand
and continuously expanded its investment scale.
Global Energy Metals Corporation
(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
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 currently owns and is advancing the Werner Lake Cobalt Mine
in Ontario, Canada and has entered into an agreement to earn-in to
the Millennium Cobalt Project in Mt. Isa, Australia.
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
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.