GBLEF - Global Energy Metals Completes on Royalty Sale of Australian Battery Mineral Portfolio; Earns Meaningful Equity Stake in Electric Royalties
(TheNewswire)
Vancouver, BC - TheNewswire - February 2nd, 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 hasclosed the sale of its 0.5% gross metal royalty (the “Royalty”)announced on July 23, 2020 to Electric Royalties Ltd. (“Electric Royalties” and/or “ELEC”)on the Millennium Cobalt Project, the Mt. Dorothy Cobalt Project andthe Cobalt Ridge Project located in Queensland, Australia.
Mitchell Smith,President and CEO, states:
" We are pleased by this first monetizationof our Australian-based battery mineral asset portfolio. The initial1,150,000 shares in Electric Royalties, equating to approximately a2.5% interest in ELEC, will provide our shareholders with a way toparticipate in an aggressive and rapidly growing royalty companyfocused on minerals core to the electric revolution.
Additionally, thecash component from the sale will allow GEMC to accelerate its mandateof diversifying exposure to the battery minerals supply chain andallow for the Company to further capitalize on the shift to electricmobility and new forms of clean energy storage driven by acceleratedefforts to reduce the world’s dependence on fossilfuels.”
Through its wholly-owned subsidiary, Element MineralsAustralia PTY , GlobalEnergy Metals has established extensive tenement holdings totaling2,560 hectares (6,326 acres) across the Mount Isa and Cloncurry miningdistricts in northwest Queensland, Australia. This commanding landpackage contains a number of properties with significant cobalt,copper, gold and base metal exploration potential. These range fromundeveloped exploration prospects to JORC-compliant resources. Theproperties include the Millennium Cobalt CopperGold deposit , and the Mount Dorothy and CobaltRidge exploration prospects .
The Mount Isa Inlier is a significantgold and base metal producing district hosting many world classcopper-gold and lead-zinc-silver deposits. The region is alsoprospective for gold, phosphate, cobalt, rare-earths, molybdenum andrhenium mineralisation and has a number of significant operating minesand new projects in development. There is well established mining,transport and processing infrastructure in close proximity to theregional centres of Mount Isa and Cloncurry and the Millenniumproperty.
Figure 1. LocationMap of Millennium and Mount Isa Projects in an Established MiningRegion with World-Class Infrastructure
InitialRoyalty
As consideration for the Royalty onMillennium and the Mount Isa Projects, Electric Royalties will issueto Global Energy Metals 1.15 million shares (the “Consideration Shares”) in ElectricRoyalties and make a CAD $150,000 cash payment. The ConsiderationShares will be subject to resale restrictions over
a period of eighteen months from thedate of issuance.
Additional RoyaltiesOption
Electric Royalties has also been granteda call option (“First Option”), exercisable at any time, for aperiod of two years from the closing date, to acquire a 0.5% royaltyon the Net Smelter Returns from the Millennium Cobalt Project (the“Millennium NSR”), by paying C$500,000 to Global, payable up to25% in shares of ELEC, at ELEC’s election.
Upon exercise of the First Option, ELECwill have a call option, exercisable on the earlier of: (i) thethird anniversary of the closing date and (ii) six months from thedate that a preliminary economic analysis or similar study on theMillennium Project is provided to ELEC, to increase the Millennium NSRby a further 1%, by paying C$1,000,000 to Global, payable up to 25% inshares of ELEC, at the election of ELEC.
For more information about the Royaltytransaction please refer to the terms of the agreement first announcedon February 27,2020 and subsequentlyon July 23,2020 .
About ElectricRoyalties Ltd.
Electric Royalties is a royalty company established totake advantage of the demand for a wide range ofcommodities (lithium, vanadium, manganese, tin, graphite, cobalt,nickel & copper) that will benefit from the drive towardelectrification of a variety of consumer products: cars, rechargeablebatteries, large scale energy storage, renewable energy generation andother applications.
Electric vehicle sales, battery production capacity andrenewable energy generation are slated to increase significantly overthe next several years and with it, the demand for these targetedcommodities. This creates a unique opportunity to invest in andacquire royalties over the mines and projects that will supply thematerials needed to feed the electric revolution.
Electric Royalties has a portfolio of 11 royalties andplans to focus predominantly on acquiring royalties on advanced stageand operating projects to build a diversified portfolio located injurisdictions with low geopolitical risk.
QualifiedPerson
Mr. Paul Sarjeant, P. Geo. and Director,is the qualified person for this release as defined by NationalInstrument 43-101 - Standards of Disclosure for Mineral Projects andhas reviewed and verified the technical information containedherein.
Global Energy MetalsCorporation
(TSXV:GEMC |OTCQB: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 LakeCobalt Mine project in Ontario, 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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