GEMC:CC - GLOBAL ENERGY METALS Enters Binding Agreement to Sell its Majority Interest in the Werner Lake Cobalt Project to High-Tech Metals Ltd.
(TheNewswire)
Vancouver, BC - TheNewswire - November 1, 2022 -
Global Energy MetalsCorporation
(TSXV:GEMC) | (OTC:GBLEF) | (FSE:5GE1) (“GlobalEnergy Metals”, the “Company” and/or “GEMC”), amulti-jurisdictional, multi-commodity critical mineral exploration anddevelopment company focused on growth-oriented battery metal projectssupporting the global transition to clean energy, is pleased toannounce the signing of a binding asset purchase and sale agreementwith High-Tech Metals Ltd. (“High-Tech”) to sell its interest inthe Werner Lake project (“Werner” and/or the “Project”) forcash and share consideration. High-Tech is a private Australiancompany that is planning to list its shares on the ASX this year.Currently, Global Energy Metals holds a 70% interest and MarqueeResources Ltd. (“Marquee”) holds a 30% interest in Werner.
Figure 1. The Werner Lake project inthe Kenora Mining District, Ontario.
Mitchell Smith , President and CEO ofGEMC comments:
“ We are pleased to increase value for ourshareholders, without dilution, through the monetization of a non coreasset as part of our ongoing strategy of building investment exposureto technology enabling metals essential to an electrified future. TheWerner transaction with High-Tech is another demonstration of therealization of this business model. We look forward to becomingshareholders of High-Tech and participating in the exploration successof the project through the public entity upon its proposed listing onthe ASX.”
Sonu Cheema, Managing Director ofHigh-Tech commented:
“The world needs more high-qualitycobalt mines and High-Tech is committed to begin work to realize thepotential of Werner in a sustainable and responsible manner to ensurestrong outcomes for all stakeholders. High-Tech is currently on thepath to IPO with Werner as our first project focused on EV metals intier-1 jurisdictions, with the aim to list by the end of2022.”
The Mineral Property Purchase and Sale Agreementprovides, among other things, that the aggregate purchase price shallbe AUD $700,000 of which AUD $50,000 shall be paid to the Company onexecution of the Mineral Property Purchase and Sale Agreement and thebalance of which will be satisfied by the issuance of a total of3,250,000 shares of HTM (the “Consideration Shares”) as to2,500,000 Consideration Shares to Global Energy Metals and 750,000Consideration Shares to Marquee.
At the closing of the sale, GEMC is expected to hold7.87% in High-Tech following High-Tech raising $4.5 million as part ofits IPO to the ASX. The funds raised will be used to list on theASX, advance exploration of the Werner Lake project, identifyadditional opportunities to grow the company, and for generalcorporate and working capital purposes.
The transaction remains subject to the satisfaction orwaiver of customary closing conditions.
Werner Lake Project
The project is located near the Ontario-Manitoba borderin the Kenora Mining District. The Werner Lake Geological Belt hostsnumerous cobalt-copper and base metal showings, deposits and pastproducing mines. The two largest cobalt deposits defined to date arethe Werner Lake Minesite Deposit and the West Cobalt Deposit. The areahas seen extensive exploration and development work since the originaldiscovery of cobalt in 1921. The Werner Lake Cobalt Mine producedcobalt ore in the 1930s and 1940s from the “Old Mine Site” depositarea and with the discovery of the main ore area at the West CobaltDeposit, was taken to production decision in the late 1990s. At thetime, infrastructure was put in place, including four season road,mill buildings, and tailings settling area. Decline ramp, drifts andraises of over 258 metres were driven into the heart of the deposit.Mineralisation remains open at depth and along strike with thepotential for undiscovered high grade zones. Metallurgical studieshave shown that excellent cobalt recoveries can be yielded from astandard flotation mill process followed by a low-pressure oxidativehydrometallurgical leach (net recovery 88%), to produce a cobaltcarbonate end product.
QualifiedPerson
Mr. Paul Sarjeant, P.Geo., is the qualified person for this release as defined by NationalInstrument 43-101 - Standards of Disclosure for MineralProjects.
Global EnergyMetals 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 affected countries. Inaddition, a significant outbreak of contagious diseases in the humanpopulation could result in a widespread health crisis that couldadversely affect the economies and financial markets of manycountries, resulting in an economic downturn that could further affectoperations and the ability to finance its operations.
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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