GBLEF - Global Energy Metals Closes Sale of New 1% NSR Royalty on Norway-Based Rana Nickel Project; Provides Update on Lovelock Drill Program
(TheNewswire)
Vancouver, BC - TheNewswire - January 27, 2022 - GlobalEnergy Metals Corporation ( TSXV:GEMC ) | ( OTCQB:GBLEF ) | ( FSE:5GE1 ) (“Global Energy Metals”, the “Company” and/or“GEMC ”), a company involvedin investment exposure to the battery metals supply chain, is pleasedto announce the closing of the previously announced Rana NickelRoyalty acquisition by Electric Royalties Ltd. (“ElectricRoyalties” and/or “ELEC”). As announced in the Company’snews releases dated October 19,2021 and December 16,2021 , ScandinavianResource Holdings (“SRH”) and GEMC created and agreed to sell toElectric Royalties a new 1% net smelter return royalty (the “1%NSR”) on four exploration licenses totaling 25 square kilometers inthe Råna mafic-ultramafic intrusion in Northern Norway, including thepast producing Bruvann Nickel mine (the “Råna Project” or“Råna”), jointly held by GEMC and SRH.
For more information on the Råna Project pleasevisit the corresponding page on the GEMC website linkedhere .
Mitchell Smith, President & CEO,Director commented:
“ With bullish implications for batterymetals from ESG friendly, safe mining jurisdictions, we believe thatour shareholders are well positioned to realize additional value fromthe strategic investments we’ve made to date. Råna is just oneexample of monetizing our current portfolio, as demonstrated by thecreation and sale of this royalty to Electric Royalties and also bythe proposed non-dilutive project advancement by incoming partnerMetals One plc while we maintain a carried interest and 1% NSR of ourown. In addition, through increased activity directed towards ourstrong, multi-jurisdictional asset base by our various partners aswell as from our own internal efforts, we plan to advance ourhigh-quality portfolio and further grow the Companyrapidly.”
In connection with closing, ELEC will issue totalconsideration of 2,000,000 common shares of the company(“Consideration Shares”) and $100,000 cash payable to GEMC and SRHin proportion to project ownership. The Consideration Shares will besubject to a voluntary escrow lock-up agreement which provides that50% of the common shares will be subject to a hold period of 4 monthsand one day, 25% for 8 months and the remaining 25% for 12 months.
The transaction remains subject to customary closingconditions including final TSX-V approval.
Global Energy Metals holds a strategic 10% projectlevel interest and 1% NSR royalty on the Råna Project. IncludingRåna, GEMC holds project level interests in 10 battery metal projectsin 4 countries across 3 continents, 1 net smelter return royalty andsignificant equity positions in 3 publicly traded companies.
As previously announced, the majority owner of Råna,SRH, recently entered into a definitive term sheet with Metals One plc(“Metals One”), a private U.K. registered company that is in theprocess of completing an AIM listing with targeted close this quarter.Metals One is acquiring the 90% interest in Råna that is held by SRHthrough a share, cash and project level expenditure transaction. GEMCwill maintain its 10% interest in the project and be carried onproject level expenditures of up to $1.5 million. As part of theagreement Metals One will be committing to a £1 million explorationwork program within the first 12 months with plans to release anupdated resource within the next 12 to 24 months.
Metals One is an exciting new battery mineralsexploration company focused on assets in the Scandinavian region andon the doorstep of the burgeoning European EV market.
More detail on Metals One plc can be found at https://metals-one.com .
Lovelock Update:
The Company is also pleased to announce the completionof the Phase 1 drilling at the Lovelock Mineproject in Nevada, USA. As previouslynoted, samples have been submitted to the American Assay lab inSparks, Nevada. Analytical laboratories in the industry continue tobe constrained, which has dramatically impacted turn-around times onthe order of several weeks to months. The Company is in close contactwith the lab and expects results to be released in batches as they arereceived in the near future.
The Company believes that Lovelock displays potentialfor near-surface cobalt, nickel and copper mineralisation and couldbecome a significant discovery opportunity in the highly prospectiveStillwater IOCG region.
Timothy Strong, Project DevelopmentManager commented:
“ The ability to efficiently execute ourfirst-ever drill program at Lovelock is an important milestone forGlobal Energy Metals. As we await drill results, planning hasalready begun for the next phase of exploration. 2022 will be animportant year for the Company as we look forward to the continuedadvancement of Lovelock and our entire battery metals rich projectportfolio .”
QualifiedPerson
Mr. Paul Sarjeant, P. Geo., is thequalified person for this release as defined by National Instrument43-101 - Standards of Disclosure for Mineral Projects.
Global Energy MetalsCorporation
(TSXV:GEMC |OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals Corp. offersinvestment exposure to the growing rechargeable battery and electricvehicle market by building a diversified global portfolio ofexploration and growth-stage battery mineral assets.
Global Energy Metalsrecognizes that the proliferation and growth of the electrifiedeconomy in the coming decades is underpinned by the availability ofbattery metals, including cobalt, nickel, copper, lithium and otherraw materials. To be part of the solution and respond to thiselectrification movement, Global Energy Metals has taken a‘consolidate, partner and invest’ approach and in doing so haveassembled and are advancing a portfolio of strategically significantinvestments in battery metal resources.
As demonstrated withthe Company’s current copper, nickel and cobalt projects in Canada,Australia, Norway and the United States, GEMC is investing-in,exploring and developing prospective, scaleable assets in establishedmining and processing jurisdictions in close proximity to end-usemarkets. Global Energy Metals is targeting projects with low logisticsand processing risks, so that they can be fast tracked to enter thesupply chain in this cycle. The Company is also collaborating withindustry peers to strengthen its exposure to these criticalcommodities and the associated technologies required for a cleanerfuture.
Securing exposure tothese critical minerals powering the eMobility revolution is agenerational investment opportunity. Global Energy Metals believe thethe time to be part of this electrification movement.
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
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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 onoperations and the ability of others to meet their obligations,including uncertainties relating to the ultimate geographic spread ofthe virus, the severity of the disease, the duration of the outbreak,and the length of travel and quarantine restrictions imposed bygovernments of affected countries. In addition, a significant outbreakof contagious diseases in the human population could result in awidespread health crisis that could adversely affect the economies andfinancial markets of many countries, resulting in an economic downturnthat could further affect 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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