Powered BY Cobalt … Driven BY Demand Global Energy Metals Signs Definitive Option Agreement with Metal Bank Limited to Commence Work Program ON the Millennium Cobalt-Copper-GOLD Project IN Queensland, Australia
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 SIGNS DEFINITIVE OPTION AGREEMENT
WITH METAL BANK LIMITED TO COMMENCE WORK PROGRAM
ON THE MILLENNIUM COBALT-COPPER-GOLD PROJECT IN
QUEENSLAND, AUSTRALIA
Vancouver, BC / TheNewswire / June 28, 2021 / Global Energy Metals
CorporaUon 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 following on
from signing binding terms earlier this month it has now entered into a formal
opOon agreement with Metal Bank Limited (“Metal Bank” and/or “MBK”) for
a 6 month exclusive opOon (“OpOon”) in favour of MBK to earn-in and joint
venture the Millennium cobalt, copper and gold project in Mount Isa,
Queensland (“Millennium” and/or the “Project”) owned by GEMC’s wholly
owned subsidiary, Element Minerals Australia Pty Ltd (“EMA”).
During the exclusive 6-month opOon period, MBK will undertake further due
diligence and complete an iniOal exploraOon program to confirm the potenOal
for mineralisaOon in the northern half of the tenement package. An in fill
pXRF soil survey and geological mapping to re fine drilling locaOons will
commence in the first week of July.
At the end of the opOon period, MBK will have the right to commence a
formal earn-in to the Project to earn up to an 80% interest over two phases.
Highlights
•Global Energy Metals and Metal Bank Limited (ASX:MBK) have signed a
formal agreement granAng MBK a 6 month exclusive opAon to earn-in and
joint venture GEMC’s Millennium copper-cobalt-gold Project in the heart of
Mount Isa, Queensland;
•Millennium contains an inferred Cu equivalent Mineral Resource of 5.89MT1
across 5 granted mining leases with significant potenAal for expansion;
•MBK’s iniAal exploraAon program at Millennium will commence in the first
week of July;
•At the end of the OpAon Period, MBK will have the right to commence a
formal earn-in to the Project to earn up to an 80% interest;
•The transacAon advances GEMC’s objecAves of moneAzing its exisAng
projects by unlocking unrealized value and advancing projects through
partner funded exploraAon; and
•GEMC retains project level exposure while diversifying its equity holdings in
a well managed company that is creaAng value through a combinaAon of
exportaAon success and quality project acquisiAon.
Mitchell Smith, President and CEO of Global Energy Metals commented:
“The opAon agreement with MBK is another significant milestone in our ability
to execute our strategic business plan. We are excited to be partnering with
MBK to advance Millennium while we conAnue to focus on strengthening our
understanding of the potenAal at Lovelock and Treasure Box, our cobalt-
copper-nickel projects in Nevada, and evaluaAng other opportuniAes within
our strong and diverse poraolio of babery metal assets. We look forward to
updaAng the market on other developments in the near future as MBK
commences its exploraAon program at Millennium.”
CommenUng on the signing of the OpUon Agreement, Inés Scotland, MBK
Chair, said:
“The opAon on the Millennium project represents an excellent growth
opportunity for MBK and its shareholders, providing us with exclusive rights to
an advanced copper-cobalt asset of signi ficant size in close proximity to
processing soluAons and excellent infrastructure.
GEMC’s work to date on the Project has demonstrated both the quality of the
known resource and the strong potenAal for a significant increase in tonnage.
We are keen to realise this potenAal and are hidng the ground running with
our iniAal work program commencing in the next week.”
The Millennium Project
Millennium is a significant advanced copper-cobalt-gold project with a large
defined zone of copper-cobalt mineralisaOon holding an inferred 2012 JORC
Resource of 5.89MT @ 1.08% CuEq1 with significant potenOal for expansion at
depth and along strike.
The Project is strategically located on granted mining leases, less than 20 km
from the Rocklands mine site and processing facility which is host to 55.4Mt
of Resources grading 0.64%Cu, 0.15 g/t Au, 290ppm Co (0.90% CuEq)2.
The Project lies within the economic and infrastructure hub of Mount Isa,
Queensland close to well establish mining, transport and processing
infrastructure.
Mapping, soil geochemistry and rock sampling conducted by GEMC idenOfied
an addiOonal 1.5 km of anomalous cobalt-copper mineralisaOon in geological
analogues that occur along a potenOal strike extension in the northern half of
the tenement package (‘Northern Extension’)3. This area has no previous
drilling to date and provides an excellent opportunity to increase the overall
resource potenOal 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 poten Oal to
grow the resource base.
AddiOonal details on the project are set out in the Company’s website:
hGps://www.globalenergymetals.com/projects/.
OpUon Agreement Summary
MBK’s exclusive opOon to earn-in and joint venture the Project commenced
upon signing the OpOon Agreement and payment of a $10,000 payment to
GEMC, and will conOnue for a term of 6 months (OpOon Period).
During the OpOon Period MBK will conduct further due diligence and
complete a Phase 1 work program including detailed geological mapping, infill
pXRF soil survey and mapping to re fine drill locaOons and reconnaissance
drilling of up to 4 RC holes for up to 500m at Millennium North.
During the OpOon Period the parOes will negoOate and agree the terms of a
formal earn-in and joint venture agreement based on agreed earn-in and joint
venture terms set out in the OpOon Agreement and otherwise on usual and
customary terms, condiOons, representaOons and warranOes for earn-in and
joint venture agreements in Australia based on the AMPLA model earn-in and
joint venture agreements for exploraOon and mining.
On or before expiry of the OpOon Period, and subject to compleOng the Phase
1 work program, MBK may give no Oce to GEMC exercising the exclusive
OpOon to earn-in and joint venture the Project and move to Phase 2.
At the commencement of Phase 2, MBK will issue the equivalent of
AUD$250,000 in MBK shares to GEMC and MBK will sole fund explora Oon
expenditure of $1M to earn a 51% interest in the Project. MBK may withdraw
during Phase 2 without earning any interest, provided MBK meets its $1M
exploraOon expenditure commitment or pays the difference to EMA.
Upon compleOng 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 noOce to buy-out 29% of EMA’s remaining interest, with MBK
taking an 80% interest in the project in consideraOon of the payment
by MBK of $1M and issue of $1M of MBK shares to GEMC.
•In the event such noOce is given the joint venture will be formed on
an 80% MBK, 20% EMA basis; or
•withdraw without earning any interest.
At the commencement of Phase 3, MBK will issue the equivalent of
AUD$350,000 in MBK shares to GEMC and a Joint Venture will be formed on a
51% MBK, 20% EMA basis, with MBK sole funding and managing. During
Phase 3, MBK will sole fund explora Oon expenditure of $2M to earn an
addiOonal 29% interest in the project, taking MBK’s total interest to 80%.
Upon MBK compleOng 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
elecOon, both parOes will jointly fund exploraOon, feasibility and development
expenditure in their proporOonate shares, with each parOes’ interest diluted
in accordance with a standard industry diluOon formula should either MBK or
EMA not contribute.
MBK OpUon, Earn-in and JV Work Programs
Note: Work programs are indicaAve and may change subject to exploraAon
results.
Phase 1 – OpUon Period
•detailed geological mapping
•infill pXRF soil survey (25m spacing) and mapping to refine drilling locaOons
•reconnaissance drilling up to 4 reverse circulaOon (“RC”) holes (2 secOon
lines) for up to 500m at Millennium North
Phase 2 - Earn-in – Resource and exploraUon 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 secOon lines at 100m spacing – 2,800m (RC)
•Federal/Corella Trend
•early reconnaissance exploraOon - 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 EsOmate
•Commencement of feasibility study
Phase 4 – Joint Venture
•CompleOon of bankable feasibility study
•Development approvals
•Development
•Mining
1 HMX ASX Announcement dated 6 December 2016 “Millennium Mineral Resource EsOmate” .
Copper equivalent (CuEq) calculaOon 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
2 CDU:ASX Announcement dated 31 October 2017
3 GEMC News Release dated 6 September 2018
Metal Bank Limited
Metal Bank Limited is an ASX-listed minerals exploraOon company (ASX:MBK).
Metal Bank’s core focus is creaOng value through a combinaOon of exploraOon
success and quality project acquisiOon. 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 O-million-ounce
upside.
The Company has an experienced Board and management team which brings
regional knowledge, experOse in early stage explora Oon 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 diversificaOon and growth through
idenOficaOon of new exploraOon opportuniOes which complement its exisOng
portolio and pursuit of other opportuniOes to diversify the Company’s assets
through acquisiOon of advanced projects or cash-flow generaOng assets to
assist with funding of the exploraOon portolio.
In pursuit of this strategy, the Company is ac Ovely reviewing new
opportuniOes within Australia with a number of third par Oes under
confidenOality arrangements. In addiOon, the Company is conOnuing to work
with government and stakeholders in the MENA region with a view to
securing an advanced copper exploraOon project.
Qualified Person
Mr . Paul Sarjeant, P . Geo., is the qualified person for this release as defined by
NaOonal 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 babery and electric vehicle market by building a diversi fied
global poraolio of exploraAon and growth-stage babery mineral assets.
Global Energy Metals recognizes that the prolifera Aon and growth of the
electrified economy in the coming decades is underpinned by the availability
of babery metals, including cobalt, nickel, copper, lithium and other raw
materials. To be part of the solu Aon and respond to this electri ficaAon
movement, Global Energy Metals has taken a ‘consolidate, partner and invest’
approach and in doing so have assembled and are advancing a por aolio of
strategically significant investments in babery metal resources.
As demonstrated with the Company’s current copper, nickel and cobalt
projects in Canada, Australia, Norway and the United States, GEMC is
invesAng-in, exploring and developing prospec Ave, scaleable assets in
established mining and processing jurisdicAons in close proximity to end-use
markets. Global Energy Metals is targeAng projects with low logisAcs and
processing risks, so that they can be fast tracked to enter the supply chain in
this cycle. The Company is also collabora Ang with industry peers to
strengthen its exposure to these cri Acal commodiAes and the associated
technologies required for a cleaner future.
Securing exposure to these criAcal minerals powering the eMobility revoluAon
is a generaAonal investment opportunity. Global Energy Metals believe the
Ame to be part of this electrificaAon movement.
For Further InformaUon:
Global Energy Metals CorporaOon
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: [email protected]
t. + 1 (604) 688-4219
www.globalenergymetals.com
TwiGer: @EnergyMetals | @USBaGeryMetals | @ElementMinerals
Subscribe to the GEMC eNewsleGer
CauUonary Statement on Forward-Looking InformaUon:
Certain informaAon in this release may consAtute forward-looking statements
under applicable securiAes laws and necessarily involve risks associated with
regulatory approvals and Amelines. Although Global Energy Metals believes
the expectaAons expressed in such forward-looking statements are based on
reasonable assumpAons, 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 obliga Aon to update these forward-looking
statements in the event that management’s beliefs, esAmates or opinions, or
other factors, should change.
GEMC’s operaAons could be significantly adversely affected by the effects of a
widespread global outbreak of a contagious disease, including the recent
outbreak of illness caused by COVID-19. It is not possible to accurately predict
the impact COVID-19 will have on operaAons and the ability of others to meet
their obligaAons, including uncertainAes relaAng to the ulAmate geographic
spread of the virus, the severity of the disease, the duraAon of the outbreak,
and the length of travel and quaranAne restricAons imposed by governments
of affected countries. In addiAon, a significant outbreak of contagious diseases
in the human populaAon could result in a widespread health crisis that could
adversely affect the economies and financial markets of many countries,
resulAng in an economic downturn that could further affect operaAons and
the ability to finance its operaAons.
For more informaAon 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 RegulaAon 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.