GBLEF - Global Energy Metals Announces Strategic Investment in Advanced and Highly Prospective Rana Nickel Project in Norway
(TheNewswire)
Vancouver, BC - TheNewswire - February 17, 2021 - Global Energy MetalsCorporation ( TSXV:GEMC ) | ( OTC:GBLEF ) | ( FSE:5GE1 ) (“Global Energy Metals”, the“Company” and/or “GEMC ”) is pleased to announce that the Company has entered into aLetter Of Intent (“LOI”), subject to final due diligence andnegotiation of definitive agreements, to acquire an interest in aportfolio of four exploration licences from Scandinavian ResourceHoldings Pty Ltd. (the “Vendor”) and to acquire a 1% royalty onthe Net Smelter Returns from the Property (the “NSR”) fromChincherinchee Nominee Pty Ltd. (the “Royalty Holder”). Theproject portfolio includes three exploration licences including thepast producing Bruvann Nickel Mine in the Råna mafic-ultramaficintrusion (Arnes,Bruavatnet and Rånbogen) and a fourth exploration licence (Krokelva),that lies outside the intrusion, west of the Bruvann Nickelmine (collectively “TheRåna Nickel Project”).
Figure 1. View overthe open pit part of the Bruvann Nickel mine, looking north-east, withthe shipping quay in the background.
The Råna Nickel Project licence areatotals 25km 2 and is located on the south shore of Ofotfjord, which isice-free year-round, 2km away from a shipping dock, with work forceand infrastructure in place and in close proximity to a growingend-user market including FREYR AS , a Norwegian incorporated company that is developingenvironmentally friendly lithium-ion based battery cell facilities inMo i Rana, Northern Norway.
Mitchell Smith,President, CEO & Director comments:
“ The electric vehicle revolution issteadily increasing demand for lithium-ion batteries, and nickel is akey component of these batteries. In an environment of robust batterydemand, the pressure for nickel will grow proportionately. Havingexposure to Class 1 nickel product suitable for battery manufacturethrough the Råna Nickel Project is a significant opportunity forGlobal Energy Metals and its shareholders.”
“As Norwaycontinues to lead the charge in electric vehicle adoption it isleveraging its plentiful renewable green energy sources to establish aEuropean presence as a sustainable battery hub. Projects such as thiswill be extremely important to the realization of increasing valuecreation for a regionalized, independent supply chain for key rawmaterials like nickel.”
The Vendor is a private company,primarily focused on the acquisition, exploration and development ofadvanced and highly prospective polymetallic nickel, copper, PGMdeposits in Norway.
With a limited number of quality nickelsulphide projects available worldwide, the Råna Nickel Projectrepresents one of the few drill-ready, low capex Class-1 nickelopportunities globally that has strong mining potential andexploration upside and presents as an opportunity as a future sourceof material suitable for the rechargeable battery sector.
ProjectHighlights:
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- The Råna intrusion hosts the BruvannNickel (copper and cobalt) mine with 9.15MT remaining resources (notincluding ore-grade pillars) in the underground mine;
- The mine is open-ended in threedirections that have been under-explored;
- Bruvann mine was operated from 1989 to2002 at an average nickel price below USD $4/lb;
- Resemblance to the World ClassVoisey’s Bay deposit and other major nickel deposits;
- Excellent near-minepotential;
- Geochemistry points to a major nickelextraction from the magma;
- Re-interpretation of geophysicalsurvey data (including newly derived geological model) confirms sixnew drill targets;
- Strong correlation between modelledconductors and surface mineralisation, including surface samples withup to 2.34% Ni, 0.27% Cu and 0.20% Co (2.98% Ni eq);
- Drill hole intersection of 13.5m at0.62% Ni, 0.13% Cu and 0.06% Co (0.83% Ni eq) in the margins of largeconductor;
- Channel sample with 6.5 m at 0.63% Ni,0.19% Cu and 0.07% Co (0.90% Ni eq) in the margins of a second largeconductor;
- The prospect lies on an ice-free fjordand Norway’s main N-S highway; and
- Much of the mine infrastructure isstill in place and maintained (roads, power lines, conveyor belt tothe shipping dock just 2 km away).
RecentExploration:
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- Airborne TEM investigations in 2005and 2006 – Penetration down to 300m;
- 16 drill holes totalling 3,982m during2006 and 2007, intersecting both disseminated, vein type and massivesulphide mineralization;
- Sulphide isotopic study in2008;
- Airborne EM and aeromagnetic surveyconducted by the Geological
Survey of Norway in 2015;
- >4,000 soil samples, >400 rocksamples creating a geochemical map of Rånbogen;
- Modelling of gravitydata;
- 3D computer modelling of the ore bodyin the mine; and
- A new derived geological model in 2019has identified 6 new targets in addition to multiple high-prioritytargets previously identified proximal to anomalous nickel bearingrock samples grading up to 2.34% Ni.
Terms:
In consideration of the 10% interest(the “GEMC interest”) and 1% NSR on the Råna Nickel Project, GEMCwill issue to the Vendor 3,300,000 common shares, subject to theapproval of the TSX Venture Exchange, in the capital of Global (the“Payment Shares”), subject to statutory and voluntary escrowprovisions.
GEMC shall have a carried interest onthe Råna Nickel Project and will not be responsible for any projectcosts, including without limitation, construction costs, explorationcosts, mine costs and operating costs on the property, until theVendor, or an affiliate of the Vendor, incurs greater than Cdn.$1,500,000 of project expenditures.
Either the Vendor or the Royalty Holderhas the right to purchase one-half of the NSR, which is a 0.5% royaltyon Net Smelter Returns, for the purchase price of Cdn.$1,000,000 on orbefore the date on which Commercial Production (as that term will bedefined in the Definitive Agreement) commences.
The Payment Shares will be subject toresale restrictions of 4 months plus one day in accordance withapplicable securities legislation and will also be subject to avoluntary pooling arrangement, pursuant to which the shares will beendorsed with applicable legends and released asfollows:
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- 50% of the Payment Shares shall bereleased on that day that is four months and one day following thedate of issuance thereof;
- 25% of the Payment Shares shall bereleased on the day that is eight months and one day following thedate of issuance thereof; and
- 25% of the Payment Shares shall bereleased on the day that is twelve months and one day following thedate of issuance thereof.
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Global Energy Metals intends to workalongside the Vendor to attract strategic partners to fund projectdevelopment at the Råna Nickel Project while leveraging its interestto create shareholder value through exploration success.
Amongst other matters, the agreement issubject to receipt of all approvals and third-party consents of theboards of directors of Global and the Vendor, and regulatoryauthorities, including but not limited to the Exchange.
QualifiedPerson
Mr. Paul Sarjeant, P. Geo., is thequalified person for this release as defined by National Instrument43-101 - Standards of Disclosure for Mineral Projects.
All technical information pertaining tothe Vendor and its properties has been provided directly by theVendor, and management of GEMC has not independently verified suchinformation.
Global Energy MetalsCorporation
(TSXV:GEMC | OTC:GBLEF| FSE:5GE1)
Global Energy Metals is focused onoffering investment exposure to the raw materials deemed critical forthe growing rechargeable battery market, by building a diversifiedglobal portfolio of battery mineral assets including project stakesand sector specific equity positions. GEMC anticipates growing itsbusiness through the acquisition and development of battery mineralprojects alongside key strategic partners. The Company holds 100%of the Millennium Cobalt Project and two neighbouring discovery stageexploration-stage cobalt assets in Mount Isa, Australia positioningit as a leading cobalt-copper explorer and developer in thefamed mining district in Queensland, Australia. The Company holds an85% interest in two battery mineral projects, the Lovelock CobaltMine and Treasure Box Project, located on the doorstep of theworld’s largest lithium-ion battery production plant, GigaNevadathat Tesla Motors Ltd. and partner Panasonic Corp. have built inNevada, USA. Additionally, the Company holds a 70%interest in the past-producing Werner Lake Cobalt Mine project inOntario, Canada.
For FurtherInformation:
Global Energy MetalsCorporation
#1501-128 West PenderStreet
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
t. + 1 (604) 688-4219
www.globalenergymetals.com
Twitter: @EnergyMetals | @USBatteryMetals | @ElementMinerals
Cautionary Statementon Forward-Looking Information:
Certain informationin this release may constitute forward-looking statements underapplicable securities laws and necessarily involve risks associatedwith regulatory approvals and timelines. Although Global Energy Metalsbelieves the expectations expressed in such forward-looking statementsare based on reasonable assumptions, such statements are notguarantees of future performance and actual results or developmentsmay differ materially from those in the forward-looking statements.Except as required by law, the Company undertakes no obligation toupdate these forward-looking statements in the event thatmanagement’s beliefs, estimates or opinions, or other factors,should change.
GEMC’s operationscould be significantly adversely affected by the effects of awidespread global outbreak of a contagious disease, including therecent outbreak of illness caused by COVID-19. It is not possible toaccurately predict the impact COVID-19 will have on operations and theability of others to meet their obligations, including uncertaintiesrelating to the ultimate geographic spread of the virus, the severityof the disease, the duration of the outbreak, and the length of traveland quarantine restrictions imposed by governments of affectedcountries. In addition, a significant outbreak of contagious diseasesin the human population could result in a widespread health crisisthat could adversely affect the economies and financial markets ofmany countries, resulting in an economic downturn that could furtheraffect operations and the ability to finance itsoperations.
For more informationon Global Energy and the risks and challenges of their businesses,investors should review the filings that are available atwww.sedar.com.
Neither TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
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