GEMC:CC - Global Energy Metals Consolidates 100% Ownership in Lovelock Mine and Treasure Box Projects Two Growth-Stage Strategic Battery Metal Projects in Nevada USA
(TheNewswire)
Vancouver, BC - TheNewswire - April27, 2023 - Global EnergyMetals Corporation ( TSXV:GEMC ) ( OTC:GBLEF ) ( FSE:5GE1 ) (“Global Energy Metals”, the “Company” and/or“GEMC”) , a multi-jurisdictional,multi-commodity critical mineral exploration and development companyfocused on growth-oriented battery metal projects supporting theglobal transition to clean energy, is pleased to announce it hasentered into a definitive binding agreement to consolidate 100%ownership of the Lovelock Mine andTreasure Box projects in Nevada, USA (the “Projects”) via a mineral claim purchaseagreement with Nevada Sunrise Metals Corporation (“NevadaSunrise”) (the “Transaction”).
HIGHLIGHTS
• GEMC to consolidate 100% ownershipof the Lovelock and Treasure Box projects
• The Transaction will increase thecurrent interest in the Projects from the current 85% to100%
• GEMC holding 100% ownership of theProject will simplify decision-making and provides the optimalstructure to oversee the rapid exploration and development of key U.S.based critical minerals projects.
• Consolidation of 100% of theProjects’ ownership will de-risk the funding pathway and enhanceGEMC’s ability to source capital for the development of the Projectsfrom a wider range of providers when compared with the existing jointventure ownership structure
• Consideration will be paid in GEMCshares, subject to TSX Venture Exchange approval, vesting over 12months thereby allowing the shareholders of the vendor to retainexposure to the Projects
Mitchell Smith, GEMCPresident and CEO commented:
“ We are extremely pleased to have reachedan agreement with Nevada Sunrise to consolidate 100% ownership of theLovelock Mine and Treasure Box projects. The exceptional explorationfindings to date demonstrate the exciting potential for copper, nickeland cobalt mineralization at a district scale in Nevada, a top tiermining jurisdiction.
This transaction is ahighly rational step for GEMC. By assuming full control of theProjects, GEMC will create a strong platform from which to develop andfund these battery mineral projects. We look forward to continuing todeliver long-term value for our shareholders by unlocking thepotential of these critically important technology enablingmetals
.”
Consolidating 100% ownership under GEMCprovides the optimal structure to oversee the rapid development of theProjects by streamlining decision making and execution. TheTransaction will simplify and de-risk the funding pathway for theProjects and will greatly enhance the Company’s ability to sourcecapital from a wider pool of investors. Management believes that thisin turn may potentially deliver enhanced returns to shareholders asthe Projects advance.
Please refer to the GEMC news release datedJanuary 31, 2023 providing a detailed summary of the results from multiple explorationprograms carried out in 2022 at the Projects located in the StillwaterRange in Nevada, USA, along with an overview of the Company’s nearterm project advancement initiatives following the explorationresults.
The Company currently owns a 85%interest in the Projects with Nevada Sunrise holding 15%. Followingcompletion of the Transaction, Global Energy Metals will have anundivided 100% interest in the Projects subject to the 2% net smelterroyalty in favour of Primus Resources L.C. (the“Royalty”).
Global shall have the right, exercisableat any time, to purchase up to 50% of the Royalty granted to PrimusResources L.C. (“Primus”) by payment to Primus of US$1,500,000subject to a protection hedge against inflation of the U.S. Dollar,using an agreed upon price of $3.25 per pound copper. Upon payment of US$1,500,000 orthe cash value of 462,000 (four hundred, sixty two thousand) poundscopper, whichever value is greater at the time of the purchase of halfof the Royalty, the Royalty shall be reduced to 1% of Net SmelterReturns, effective as of the date of such payment and provided thatProducts produced before the date of such payment shall be subject tothe 2% Royalty.
As consideration for the Transaction,and subject to receiving approval from the TSX Venture Exchange, theCompany will issue 2,500,000 shares in GEMC to Nevada Sunrise. Theshares will vest in four equal instalments of 625,000 shares on thefourth, sixth, ninth and twelfth months from issuance.
AboutLovelock
The Property currentlyconsists of 81 unpatented lode claims in the Cottonwood Canyon area ofthe Stillwater Range totaling approximately 1,586 acres(642 hectares). It was discovered by George Lovelock and Charles Bellabout 1880. According to U.S. Government annual reports, the LovelockMine saw limited production of nickel, copper and cobalt beginning in1883. The primary cobalt mineral was identified as “cobaltite”.The general average of the 200 tons shipped in 1886 averaged 14percent cobalt and 12 percent nickel. The mine operated from 1883 to1890 to the 100 foot level, reporting 500 tons of cobalt and nickelmineralized material shipped to England for processing. Afterintermittent production, an English company attempted smelting on sitein 1898 but little or no production was made (Source: “MineralResources of the United States for 1885”, 1886). No furtherproduction from the Lovelock Mine is known for well over a centuryproviding GEMC an excellent opportunity to unlock the potential valueof the deposit through exploration work. In a recent drill program at Lovelock byGEMC , elevated values ofcobalt, nickel and copper were intercepted in three of the holes whichtargeted possible mineralization beneath the historical mineworkings.
About TreasureBox
Treasure Box hosts mineworkings from limited copper production, which occurred until earlyinto the 20th century. A historical diamond drill hole (circa 1910)drilled at the Treasure Box by the Boyer-Nevada Copper Companyreportedly intersected 1.52% copper over 85 feet (25.9 metres) withmineralization beginning at surface. A reverse circulation holedrilled on the Treasure Box by Utah International in 1976 returned1.55% copper over 40 feet (12.2 metres) from a depth of 85 to 125 feet(25.9 to 38.1 metres), and the hole was stopped in chalcopyritemineralization. The core Treasure Box claims were held continuouslyfor over 20 years by a private company but were relinquished inSeptember 2017, leading to their acquisition by Nevada Sunrise. GEMCreceived approval from the US Bureau of Land Management (the“BLM”) for a proposed exploration and drill plan at the TreasureBox project that includesup to thirteen (13) vertical drill holes from thirteen (13) differentlocations. Planned drill hole lengths range from 350 feet (107 metres)to 500 feet (152 metres). Total drilling is anticipated to be 5,850feet (1,784 meters), with a minimum drilling length of three (3) drillholes totaling 1,350 feet (412 metres). Depending on findings,individual drill hole lengths could be extended by 30 to 50 feet (10to 15 metres) as determined by the company’s on-site representative.The targeted prospects have been identified by Global Energy Metalsthrough a systematic exploration program over the past several monthsthat has included an airborne magnetic survey, reinterpretation ofhistorical Induced Polarization (IP) data, detailed mapping anddesktop review of historical data including pastdrilling.
QualifiedPerson
Mr. Paul Sarjeant, P.Geo., is the qualified person for this release as defined by NationalInstrument 43-101 - Standards of Disclosure for Mineral Projects. Heis a shareholder and Director of the Company.
Global Energy Metals Corporation
(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 believesNow is the Time to be part of this electrificationmovement.
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 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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