Powered BY Cobalt … Driven BY Demand Global Energy Metals Announces Royalty Sale ON Strategic Battery Metal Portfolio FOR Meaningful Stake IN Electric Royalties
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
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GLOBAL ENERGY METALS ANNOUNCES ROYALTY
SALE ON STRATEGIC BATTERY METAL PORTFOLIO
FOR MEANINGFUL STAKE IN ELECTRIC ROYALTIES
Vancouver, BC / TheNewswire / July 23, 2020 / Global Energy
Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 (“Global
Energy Metals”, the “Company” and/or "GEMC") is pleased to
announce that as part of the Company’s porOolio opPmizaPon strategy it has
entered into a definiPve purchase agreement (the “Purchase Agreement”) to
sell a porOolio of royalty interests to Electric RoyalPes Ltd. (TSXV:ELEC)
(“Electric RoyalPes” and/or “ERL”) on the Millennium Cobalt Project, the Mt.
Dorothy Cobalt Project and the Cobalt Ridge Project (the “Royalty PorOolio”)
located in Queensland, Australia.
President & CEO, Mitchell Smith commented:
“The closing of this royalty transac1on and major endorsement by this new
electric-metals royalty company underpins another step in the company’s
strategy to create value from its strategic ba<ery mineral por=olio.”
“Through the meaningful stake in Electric Royal1es, Global Energy will have
added exposure to the strong and diversified energy mineral asset royalty
por=olio that ERL holds in lithium, vanadium, manganese, cobalt, and
graphite, as well as the added benefit of like-minded corporate objec1ves and
growth mandate in a strong cri1cal minerals and clean energy price environ-
ment.”
Ini8al Royalty
Pursuant to the terms of the agreement announced on February 27, 2020, in
consideraPon for a 0.5% gross metal royalty (the “Royalty”) on Millennium
and the Mount Isa Projects, Electric RoyalPes will issue to Global Energy Met-
als 1.15 million shares (the “ConsideraPon Shares”) in Electric RoyalPes and
make a CAD $150,000 cash payment. The ConsideraPon shares will be es -
crowed and have a staged vesPng period over eighteen months.
Addi8onal Royal8es Op8on
Electric RoyalPes, has also been granted a call opPon (“First OpPon”), exercis-
able at any Pme, for a period of two years from the EffecPve Date, to acquire
a 0.5% royalty on the Net Smelter Returns from the Millennium Cobalt Project
(the “Millennium NSR”), by paying C$500,000 to Global, payable up to 25% in
shares of ERL, at ERL’s elecPon.
Upon exercise of the First OpPon, ERL will have a call opPon, exercisable on
the earlier of: (i) the third anniversary of the Closing Date and (ii) six months
from the date that a preliminary economic analysis or similar study on the
Millennium Project is provided to ERL, to increase the Millennium NSR by a
further 1%, by paying C$1,000,000 to Global, payable up to 25% in shares of
ERL, at the elecPon of ERL.
ABOUT ELECTRIC ROYALTIES LTD.
Electric RoyalPes is a royalty company established to take advantage of the
demand for a wide range of commodiPes (lithium, vanadium, manganese, Pn,
graphite, cobalt, nickel & copper) that will benefit from the drive toward
electrificaPon (cars, rechargeable baGeries, large scale energy storage,
renewable energy generaPon and other applicaPons).
Electric vehicle sales, baGery producPon capacity and renewable energy
generaPon are slated to increase significantly over the next several years and
with it, the demand for these targeted commodiPes. This creates a unique
opportunity to invest in and acquire royalPes over the mines and projects that
will supply the materials needed to feed the electric revoluPon.
Electric RoyalPes has a porOolio of 8 royalPes, with a further 3 royalPes under
definiPve agreement with closing subject to fulfillment of customary
condiPons including regulatory approvals. Electric RoyalPes plans to focus
predominantly on acquiring royalPes on advanced stage and operaPng
projects to build a diversified porOolio located in jurisdicPons with low
geopoliPcal risk.
Qualified Person
Mr . Paul Sarjeant, P . Geo. and Director, is the qualified person for this release
as defined by NaPonal Instrument 43-101 - Standards of Disclosure for
Mineral Projects and has reviewed and verified the technical informaPon
contained herein.
(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals provides investors and partners with exposure to the
immediate need for metals criPcal to the new energy economy by building a
diversified global porOolio of cobalt and baGery metals rich projects in top-
Per mining jurisdicPons with exploraPon & development upside to become a
supply chain soluPon to safe and reliable cobalt for downstream partners.
Global Energy Metals holds 100% of the Millennium Cobalt Project and two
neighbouring discovery stage exploraPon-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 exploraPon projects in Nevada, 150km
East of the Tesla Gigafactory.
For Further Information:
Global Energy Metals CorporaPon
#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.