Powered BY Cobalt … Driven BY Demand Global Energy Metals Announces Signing of Definitive Agreement to Acquire Highly Prospective Cobalt Projects IN Nevada
TSX.V GEMC
www.globalenergymetals.com
Suite 1501,
Sun Tower
128 West Pender St. Vancou-
ver , BC
V6B 1R8
T +1.604.688.4219
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GLOBAL ENERGY METALS ANNOUNCES SIGNING OF
DEFINITIVE AGREEMENT TO ACQUIRE HIGHLY PROSPECTIVE
COBALT PROJECTS IN NEVADA
Vancouver, BC / TheNewswire / January 21, 2019 / Global Energy
Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1
(“Global Energy Metals”, the “Company” and/or "GEMC") is pleased
to announce that the Company has signed a definitive agreement (the
“Agreement”) with Nevada Sunrise Gold Corp (“Nevada Sunrise” or
the “Optionor”) to acquire an 85% interest in the Lovelock Cobalt
Mine (the “Lovelock Mine”) and the Treasure Box Project (“Treasure
Box”), located in Churchill County, approximately 150 kilometres east
of the Tesla Gigafactory in Sparks, Nevada.
Further to the LOI announced on September 11, 2018 and under the
renegotiated terms of the Agreement, Global Energy Metals will now
have the option to acquire 85% ownership interest in the Projects as
highlighted below.
This transaction is subject to the acceptance of the TSX Venture
Exchange, which the Company will be seeking forthwith.
Project Highlights
•Nevada Cobalt: The right place at the right time in a superior
mining jurisdiction which hosts several copper-gold projects nearby
and benefits from having excellent infrastructure.
•Strategically Situated: Located in the Stillwater Range with good
access, infrastructure in place and only 150 kilometres east of
Sparks Nevada, home to - Tesla’s Gigafactory 1.
•Historic Producer: Limited, yet high-grade, production of cobalt,
nickel and copper in the 1880s but the area has never been
thoroughly explored in the modern era.
•High-Grade Cobalt: The general average of the 200 tons shipped in
1886 averaged 14 percent cobalt a n d 12 percent nickel (Source:
"Mineral Resources of the United States for 1886”).
•Drill Ready: Eight diamond drill targets have been identified in
addition to geological mapping, chip and channel sampling and
geophysics.
•District Opportunity: Region shows strong enrichment in cobalt,
nickel and copper making it very attractive for further exploration
and expansion through other attractive growth opportunities.
Mitchell Smith, Global Energy Metals President & CEO, stated “The
acquisition of the Nevada cobalt projects is another significant
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milestone for GEMC. This transaction exposes the Company and its
shareholders to a wealth of exploration opportunities in another top-
tier mining district with proven mineral endowment. GEMC believes
that the sizeable property package it has locked up in the heart of a
very prolific and proven district, hosts the potential for significant
cobalt exploration upside.”
Figure 1. Lovelock and Treasure Box Location Map
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Re-negotiated Terms of the Agreement
The Definitive Agreement now allows for GEMC to acquire an 85%
interest in both Lovelock and Treasure Box subject to Nevada Sunrise
first acquiring the interest pursuant to an underlying agreement with
a third party vendor. The Agreement also allows for GEMC to reduce
the exploration payments to USD $1,000,000 by the third anniversary
of the Effective Date (as defined in the Agreement) a change from the
LOI that required $2,500,000 in expenditures.
In order to exercise the option, the Company is required to complete
the following:
A.Issue to Nevada Sunrise of such number of common shares in the
capital of Global (the “Payment Shares”) as is equal to USD
$200,000 at a deemed price per share equal to the greater of: (a)
$0.15; and (b) the Volume Weighted Average of the closing price of
the Company’s shares for the 20 trading days immediately prior to
the execution of the Agreement.
B.Assume all future cash to the underlying vendor payable as
scheduled below subject to an existing 2.0% net smelter royalty
(the “Existing Royalty”):
•March 22, 2019: USD $20,000 in cash;
•December 22, 2019: USD $25,000 in cash; and
•December 22, 2020: USD $30,000 in cash.
C.Reimburse Nevada Sunrise for the issue by Nevada Sunrise of
Nevada Sunrise common shares to the underlying vendor, with
common shares of the Company, payable as scheduled below:
•March 22, 2019: such number of shares as is equal in value to
200,000 shares of Nevada Sunrise on the day prior to their
issuance;
•December 22, 2019: such number of shares as is equal in value
to 250,000 shares of Nevada Sunrise on the day prior to their
issuance; and
•December 22, 2020: such number of shares as is equal in value
to 300,000 shares of Nevada Sunrise on the day prior to their
issuance.
•March 22, 2019: such number of shares as is equal in value to
USD$5,000 to reimburse Nevada Sunrise for the payment made
by Nevada Sunrise to Primus of USD$5,000.
D.In order to maintain in force the Option granted to it, and to
exercise the Option, Global must also incur Expenditures totaling
USD$1,000,000 by the third anniversary of the Effective Date.
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.
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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 70% of the Werner Lake Cobalt Mine in Ontario,
Canada and has entered into an agreement to acquire 100% of the
Millennium Cobalt Project and two neighbouring discovery stage
exploration-stage cobalt assets 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.
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THE SECURITIES DESCRIBED HEREIN IN THE UNITED STATES. THESE SECURITIES HAVE NOT
BEEN, AND WILL NOT BE, REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED, OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED OR SOLD
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