Global Energy Metals Arranges Strategic Investment from Canada Cobalt Works; Signs MOU to use Revolutionary Hydrometallurgical Process at Nevada Battery Metals Projects
Vancouver, BC / TheNewswire / May 7, 2019 - Global Energy Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 ("Global Energy Metals", the "Company" and/or "GEMC") is pleased to announce a strategic technological initiative with Canada Cobalt Works ("CCW" or "Canada Cobalt"), featuring the propriety and environmentally friendly Re-2OX Process, to accelerate the advancement of GEMC's Lovelock Mine and Treasure Box properties in Nevada as work programs commence this month. Lovelock and Treasure Box are located in Churchill County, a 90-minute drive from the Tesla-Panasonic Gigafactory 1.
The Re-2OX Deal
GEMC and Canada Cobalt have entered into a non-binding Memorandum of Understanding (MOU) that allows for cobalt-nickel-copper-bearing mineralized material from Lovelock and Treasure Box to be put through the Re-2OX Process in order to confirm efficient battery metal extraction and create a potential battery grade test product.
Canada Cobalt will supervise the program protecting intellectual property as results flow to GEMC, and will be paid a $200,000 upfront first-stage Re-2OX fee, exclusive of sampling and lab costs to be borne by GEMC to a maximum of $100,000. The companies may broaden their relationship.
Canada Cobalt will also take an immediate equity position in GEMC, subscribing for 2,000,000 units at $0.075 per unit for total proceeds to GEMC of $150,000. Each Unit will consist of one common share and one transferable common share purchase warrant with each warrant entitling the holder thereof to acquire a common share at the exercise price of $0.10 per share for a period of 36 months from the closing date, subject to acceleration.
Mitchell Smith, CEO & Director, Comments on the agreement:
While the future of EV's and other green technologies is promising, North America is highly import-reliant for those critical metals that are fueling the road to electrification. Partnering with Canada Cobalt Works and utilizing their Re-2OX Process is a crucial step in unlocking the potential Lovelock and Treasure Box provide for shareholder exposure to strategically important U.S.- based battery mineral assets. Significantly, Re-2OX has allowed Canada Cobalt to become the first company in Canada's Cobalt heartland to produce a battery grade cobalt sulphate test product with nickel-manganese-cobalt (NMC) formulations in their pipeline
Frank J. Basa, President and CEO of Canada Cobalt, commented:
We are pleased to enter into a strategic relationship with the Global Energy Metals team. We have a shared objective of advancing the metallurgical understanding of GEMC's promising Nevada based battery metal assets using Re-2OX. The very adaptable Re-2OX process has shown very high recovery rates for multiple metals and the ability to create a compound suitable for end-use in battery production
Re-2OX testing of material from Lovelock and Treasure Box will be part of a broader exploration work program that will allow for reinterpretation of historic data and a better understanding of the ability to unlock the cobalt, nickel and copper potential from these Nevada projects.
Other Private Placement Details
The Company intends to use the proceeds from the private placement to help fund the above-described Re-2OX Process and for further exploration activities at the Lovelock and Treasure Box projects.
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.
Closing of the strategic financing is subject to approval by the TSX Venture Exchange. All of the securities issued under this financing will be subject to a hold period of 4 months from the closing date of the offering.
(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 metal-related projects with key strategic partners. Global Energy Metals currently owns 70% of the Werner Lake Cobalt Mine in Ontario, Canada, has an option to acquire an 85% interest in two cobalt exploration projects in Nevada, 150 km east of the Tesla-Panasonic Gigafactory 1, 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
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.