Global Energy Metals Enters Into LOI to Acquire High-Grade Cobalt Projects 150KM East of the World's Largest Battery Factory
GLOBAL ENERGY METALS ENTERS INTO LOI TO ACQUIRE HIGH-GRADE COBALT PROJECTS 150KM EAST OF THE WORLD'S LARGEST BATTERY FACTORY<, TheNewswire - Global Energy Metals Corp. TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 ("Global Energy Metals", the "Company" and/or "GEMC") is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") with Nevada Sunrise Gold Corp. ("Nevada Sunrise" or the "Optionor") to acquire an 80% 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. "We are very pleased with the signing of the LOI to acquire an interest in the Lovelock and Treasure Box cobalt projects as we believe this transaction represents an excellent step for the Company to further grow its exciting cobalt asset portfolio and build a new presence in the United States," said Mitchell smith, President and CEO of Global Energy Metals. "We look forward to applying modern exploration methods to unlock the potential of these high-grade cobalt assets."
Figure 1. Lovelock and Treasure Box Location Map
Click Image To View Full Size
Project Highlights
Nevada Cobalt: The right place at the right time in a superior mining jurisdiction which hosts several promising 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 the world's largest battery factory - Tesla's Gigafactory 1.
Historic Producer: Limited, yet high-grade, production of cobalt, nickel and copper in the 1880s but 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 and 12 percent nickel (Source: "Mineral Resources of the United States for 1886").
Drill Ready: Discovery phase exploration program expected to include detailed geological mapping, chip and channel sampling, together with magnetic surveys.
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.
Terms of the LOI
The Company entered into the LOI with Nevada Sunrise to acquire an 80% 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. In order to exercise the option, the Company is required to complete the following:
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 Definitive Agreement, as herein defined.
Assume all future cash to the underlying vendor payable as scheduled below subject to an existing 2.0% net smelter royalty (the "Existing Royalty"):
December 22, 2018: USD $20,000 in cash;
December 22, 2019: USD $25,000 in cash; and
December 22, 2020: USD $30,000 in cash.
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:
December 22, 2018: 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.
Incur USD $2,500,000 in exploration expenditures as follows:
USD $1,000,000 in exploration expenditures by the second anniversary date of the definitive agreement to be entered into by the parties, and
an additional $1,500,000 in exploration expenditures by the third anniversary date of the definitive agreement.
Closing of the acquisition is subject to completion of due diligence review of the Property, satisfaction of the conditions specified by the LOI including but not limited to the Company undertaking and closing an equity financing of not less than $500,000 and the acceptance of the Agreement by 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.
(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:
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
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.
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