Global Energy Metals Acquires Right to Use Hydrometallurgical Process at Nevada Battery Metals Projects; Provides Update on the Lovelock Cobalt Mine Program
TSX VENTURE: GEMC
Vancouver, BC / TheNewswire / May 30, 2019 - Global Energy Metals Corporation TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1 ("Global Energy Metals", the "Company" and/or "GEMC") is pleased to announced that it has amended the terms of the previously entered into non-binding Memorandum of Understanding and entered into a binding agreement with Canada Cobalt Works Inc. for a right to use for a period of one year Canada Cobalt Works' Re-2OX technology to accelerate the advancement of the Lovelock Cobalt Mine and Treasure Box projects.
Canada Cobalt Works' hydrometallurgical process will complement a wider exploration and drilling 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 GEMC's Nevada based projects.
An overview of the terms of the agreement for use of the Re-20X technology by GEMC is detailed below.
Lovelock Cobalt Mine Update
The Company is also pleased to provide an update on the Company's ongoing activities at the Lovelock Cobalt Mine in Churchill County, Nevada.
GEMC conducted a site visit of the property and took a number of selective samples that were sent to ALS in Sparks, Nevada, to validate historical analytical results. Lab results from these samples compare well and reinforce confidence in the historical numbers for battery metals including cobalt, copper and nickel.
In addition to the samples noted above, approximately 100 kilograms of material taken during the site visit was sent to the SGS Canada Inc. laboratory in Lakefield, Ontario, for analyst as part of the strategic technological initiative with Canada Cobalt Works to use the proprietary and environmentally friendly Re-2OX Process.
Lab findings, combined with the exploration potential and targets identified by the technical team, supports the development of an initial work program including additional surveying and sampling and an integrated model of the historical workings and geological data to extrapolate high priority target areas for future drilling. Planning for this is well underway.
Mitchell Smith, CEO and Director commented:
"The Lovelock property has delivered historical cobalt, nickel and copper production and, more recently, encouraging assay numbers from samples taken during our site visit earlier this month. We are keen to get to work and explore the property-wide potential of this asset and work alongside Canada Cobalt Works in unlocking value through the Re-2OX process."
Acquisition Terms for Use of Re-2OX Technology
In consideration for use of the technology, GEMC shall pay to Canada Cobalt Works a cash payment of $50,000 and, subject to prior acceptance by the TSX Venture Exchange, issue 2,000,000 units ("Units") of GEMC at a price of $0.075 per Unit for deemed consideration of $150,000.
Each of the Units shall consist of one common share and one transferable common share purchase warrant (collectively, "Warrants") with each of the Warrants entitling the holder thereof to acquire one common share of GEMC at the exercise price of $0.10 per share for a period of 36 months from the date of issuance of the Warrants. 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 their issuance, the daily volume weighted average trading price of the common shares of GEMC is at least $0.20 per share, GEMC may accelerate the expiry date of the warrants to the 30th day after the date on which GEMC gives notice to Canada Cobalt Works in accordance with the terms of the Warrants of such acceleration.
The agreement with Canada Cobalt Works is subject to TSXV Exchange approval.
Mr. Paul Sarjeant, P. Geo., is the qualified person for this release as required 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 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.
We seek safe harbour.
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