GEMC:CC - Global Energy Metals Enters into Strategic Partnership with Kingsrose Mining to Advance the Rana Nickel-Copper-Cobalt Project in Norway; Kingsrose Commits to Spend up to $15 Million in Exploration Expenditures
(TheNewswire)
Vancouver, BC - TheNewswire - January 1 8 , 2023 - Global Energy MetalsCorporation ( 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 that it hasentered into a transaction implementation agreement (TransactionImplementation Agreement) with Kingsrose MiningLimited (“Kingsrose”) and Scandinavian Resource Holdings Pty Ltd(“SRH”) for Kingsrose to make a staged investment into thebrownfield Råna Nickel-Copper-Cobalt (Ni-Cu-Co) project (the“Project”) and formation of a joint venture for the developmentand operation of the Project (the “Transaction”).
Highlights
-
The Råna project has proven potential for discovery ofmassive sulphide Ni-Cu-Co mineralisation and is underexplored usingmodern deposit models and exploration methods.
-
Excellent access to local infrastructure, located 37kilometres by main road from the ice-free, deep-water Port of Narvikin Nordland County, Norway.
-
The project includes the past producing, undergroundBruvann Mine within a contiguous exploration licence holding of 25square kilometres.
-
-
The Bruvann deposit included a small but high-grade(approximately 1 to 5% Ni) massive sulphide core, indicating that theintrusion generated high tenor nickel sulphidemineralisation.
-
Past production demonstrates the viability of operatingin the region and the mine area remains designated for raw materialextraction in the municipality land use zoning plan.
-
-
Kingsrose has identified three priority prospects witha focus on exploration for high-grade nickel-copper-cobalt sulphidemineralisation:
-
Largely undrilled massive sulphide mineralisationoutcrops at surface over a 1.6 kilometre zone at the Rånbogenprospect with historical rock chip samples up to 2.3% Ni and 3.2%Cu
-
Historical (2006) drilling at the southeastern part ofRånbogen returned a best intercept of 17.5 metres @ 0.53% Ni, 0.12%Cu, 0.05 % Co from 101 metres (SH004), including 2.5 metres @ 1.13%Ni, 0.24% Cu, 0.10 % Co and remains open.
-
The Bruvann Mine is open immediately along strike frommine workings and is adjacent to a 1km long, undrilled conductive bodywhich may represent massive sulphide mineralisation. Offset styles of copper-rich mineralisation south of the mineare inferred from historical drill data in hole P-11-97 and have neverbeen followed up:
-
15.1 metres at 1.89% Cu from 148.6 metres, including8.7 metres @ 2.35% Cu from 155.0 metres.
-
-
The prospective basal ultramafic part of the intrusionstrikes over 8 kilometres and dips to the southeast within the licenceholding. This has never been systematically explored.
-
-
The Transaction Implementation Agreement allows forKingsrose to earn up to 75% over 8 years, through staged expenditureup to a total of A$15m.
Figure 1: Location of the Rana project and proximity tolocal infrastructure
Mitchell Smith, CEO and Director of Global EnergyMetals commented:
“We are very excited by this development and thesignificance it has for validating the strategic interest we hold inthe Råna project. This agreement provides an opportunity tosignificantly grow our shareholder’s value through the sole fundedand rapid advancement of the Råna project by our new partnerKingsrose Mining. Additionally, we benefit from being aligned with a formidable team that combines Råna’sexploration and development expertise along with extensivejurisdictional knowledge, proven mining experience and success intransacting. We look forward to working with the Kingsrose team insetting a new standard in ‘green exploration and development’ withthis partnership.”
Fabian Baker, Kingsrose Managing Director,commented:
“ Råna is a veryexciting nickel-copper-cobalt sulphide exploration project whichcomplements Kingsrose’s growing critical metals portfolio in theNordics. Syn-orogenic mafic-ultramafic intrusions analogous to Rånahost some of the highest-grade deposits globally, such asNova-Bollinger and Kabanga. Mineralisation at the Bruvann depositprovides proof of concept that the system is fertile and capable ofproducing high tenor magmatic nickel sulphide.
Exploration outside of the mine site is very immature,in that modern models of magmatic sulphide deposit formation andexploration techniques have not been applied. Kingsrose sees excellentpotential for the discovery of additional high-grade massive sulphidebodies through exploration of the whole intrusive system, with aparticular focus on basal and ‘offset’ styles of mineralisationwhich are common in these settings but have not been explored forhistorically. We have a focussed exploration program planned torapidly advance our understanding of the geology and generate targetsfor drilling later in 2023.
This transaction is testament to ourM&A strategy in a market where high-quality nickel sulphideprojects are difficult to come by. Nickel is essential in theelectrification required to achieve a low carbon future and Europeneeds to secure a sustainable domestic supply. With additional fundsfrom the sale of Way Linggo, Kingsrose looks forward to advancingRåna alongside Penikat and Porsanger while continuing the search foradditional assets to support Europe’s green energytransition. ”
Key Terms of Transaction ImplementationAgreement
The Transaction Implementation Agreement provides forthe establishment of a new Norwegian joint venture company (“JVCompany”) and for Kingsrose to offset expenditure on the Project asconsideration for shares in the JV Company. Kingsrose has paid apre-completion deposit of A$25,000 to SRH, additionally, Kingsrosewill make payments in cash and Kingsrose shares to SRH on earn-inmilestones as described below:
| Completion |
| Milestone |
| Consideration |
| First (For 10% of shares in JVCompany) |
| The incorporation of the JV Company withan issued capital of 90,000 JV Company shares with:
SRH and GEMC transfer each of theExploration Licences to the JV Company, ( First Milestone ). |
| 10,000 JV Company shares will be issuedand allotted to the Company ( First Milestone Shares ) on payment by Kingsrose of NOK 140,000 into the capital ofJV Company (A$20,300 based on NOK:A$ exchange rate of0.145). A$30,000 to be paid by the Company toSRH. |
| Second (For 51% of shares in JVCompany) |
| Kingsrose (or a related body corporate) ( Manager ),incurring expenditure of at least A$3 million (minus the Licence FeesAmount) within 3 years from the date of First Completion including notless than:
( Second Milestone ). |
| 94,617 JV Company shares will be issuedand allotted to the Company. 10,513 JV Company shares will be issuedand allotted to GEMC. 1,000,000 KRM Shares will be issued andallotted to SRH. |
| Third (For 65% of shares in JVCompany) |
| Expenditure by the Manager of at leastan additional $4 million within 2 years following Second Completion( ThirdMilestone ) |
| 103,391 JV Company shares will be issuedand allotted to the Company. 3,500,000 KRM Shares will be issued andallotted to SRH. $250,000 to be paid by the Company toSRH. |
| Fourth (For 75% of shares in JVCompany) |
| Expenditure by the Manager of at leastan additional $8 million within 3 years following Third Completion( FourthMilestone ) |
| 10,000 JV Company shares will be issuedand allotted to the Company. A cash payment of $750,000 to be paid bythe Company to SRH. |
Completion of the transaction will occur in fourstages, with each completion and payment and/or issuance ofconsideration subject to satisfaction of certain milestones on theterms set out in the Schedule to this announcement.
GEMC shall be free carried to completion of the SecondMilestone, thereafter GEMC shall be required to contribute pro-rata(10%) to expenditure on the Project in accordance with a work programand budget to be determined by Kingsrose as Manager of the Project. Inthe event GEMC elects not to contribute its funding share, Kingsrosehas the first right to provide such funding and acquire additionalshares in JV Company.
The Project is subject to three net smelter royaltydeeds of one percent payable by JV Company to each of GEMC, ElectricRoyalties Corp., and Chincherinchee Pty. The TransactionImplementation Agreement provides for SRH and GEMC to enter into aright of first refusal deed granting Kingsrose a right of firstrefusal to acquire the right, title and interest in the ChincherincheeRoyalty and the 0.5% buyback option in the GEMC royalty.
Exploration Potential and Work Program
Initial field observations by Kingsrose indicate thatRåna is a mafic-ultramafic chonolith comprising multiple complexmagmatic phases, with internal characteristics that are consistentwith a conduit-style of emplacement. The basal ultramafic intrusiveunits occur mostly at the northwestern part of the intrusion which iscontrolled by SRH, and is the most prospective horizon for high tenor,massive sulphide nickel mineralisation.
-
Kingsrose interprets the mineralised intrusions atBruvann and Rånbogen to be chonoliths forming part of a larger,multi-phase intrusive complex. Chonoliths are pipe like intrusionswhich may have short lateral but long down dip continuity.
-
Massive sulphide mineralisation typically occurs at thebase of a chonolith and in the immediate footwall as ‘offset’bodies of massive sulphide mineralisation. Exploration for thesestyles of mineralisation has not been systematically undertakenhistorically at Råna and these may be blind at surface, compromisingdetection by traditional methods.
-
Historical work focused predominantly on near mineexploration of outcropping mineralisation at Bruvann with limited tono application of modern exploration models forchonolith hosted magmatic sulphide deposits.
-
Deep penetrating AMT geophysical surveys are planned toexplore for conductive bodies from surface to more than 600 metresdeep, which may host massive sulphide mineralisation.
-
Airborne magnetic geophysical surveys will be used tomodel intrusion morphology.
-
Detailed mapping, core logging and XRF measurements forlithogeochemical characterisation will be used to generate a threedimensional geological model and identify prospective intrusiveunits.
-
Drilling is expected to commence later in the Norwegiansummer.
-
Massive sulphide outcrops with high nickel tenors atBruvann and Rånbogen demonstrate fertility and, with 8 kilometres oflargely untested strike along the northern intrusion margin, Kingsroseconsiders that there is scope for a significant scalediscovery.
Overview of the Project
Location and Tenure
The Råna project is located Nordland County, Norway,37 kilometres west by road from the town of Narvik and a deep-water,ice-free port which ships approximately 20 million tonnes of iron oreper year from LKAB’s Kiruna operations.
The Project comprises four contiguous explorationlicences totalling 25 square kilometres, owned 90% by ScandinavianResource Holdings and 10% by Global Energy Metals Corp. Net smelterroyalties totalling 3% apply to the Project in addition to a 0.5% netsmelter royalty under Norwegian mineral law. The licences were grantedin January 2019 and are valid through to 2026.
Exploration has been carried out sporadically at theRåna intrusion since at least 1880 when sulphides were discovered inthe south at Eiterdalen. Exploration by Stavanger Staal and the NGU inthe 1970s and 1980s focused on Bruvann, including 33,769.7 metres ofdrilling and various ground based geophysical surveys which definedthe Bruvann deposit. A private company, Nikkel og Olivin andOutokumpu conducted underground mining at Bruvann from 1989 until2002, initially through a small open pit and later underground mining.Production is reported to have totalled 8.5 million tonnes at 0.5%Ni, 0.1% Cu and 0.03% Co from approximately 25 kilometres ofunderground workings, with life of minerecoveries reported as 74% Ni, 85% Cu and 62% Co.
Scandinavian Highlands explored the northern part ofthe intrusion from 2004-2013, carrying out surface geochemicalsampling and a SkyTEM geophysical survey over the whole licence areabefore testing Arnes and Rånbogen with 16 diamond drill holes for4,000 metres. The SkyTEM survey identified several strong, nearsurface conductors at Bruvann, Arnes and Rånbogen, however theeffectiveness of this method is limited by the steep topography andonly has a depth of penetration of approximately 100 metres belowsurface.
The Råna mafic-ultramafic layered intrusion outcropsover an area of 9 by 11 kilometres and comprises basal ultramaficperidotite and pyroxenite sills with upper, more mafic and voluminousgabbro norite and quartz norite, dated at 436.7 Ma and emplaced intoCambrian gneisses and argillaceous metasedimentary rocks withlocalised graphitic horizons.
Mineralisation typically occurs in the basal ultramaficunits which host the highest tenor nickel sulphides and outcrop mainlyin the northwest part of the intrusion. Sulphide mineralisation isalso observed in the upper gabbronorites albeit of lower nickel tenor.Magmatic sulphide is observed at several prospects along the northernmargin of the intrusion controlled by SRH, including the Bruvann Mine,Rånbogen and Arnes prospects.
Known mineralisation at Bruvann is largely mined outhowever historical drill core is available for inspection and providesan important source of information for understanding the controls onmineralisation. Historical drill data indicates that themineralisation remains open along strike to the west and east, andthat a low grade disseminated halo exists adjacent to the mineworkings.
Mineralisation occurs from surface and has been drilledto at least 500 metres below surface in the west, where the intrusionand mineralisation is overlain by gneiss. The Bruvann depositcomprised a 10-45 metres thick, peridotite hosted, southwest dippingzone of disseminated sulphide which occurs over a strike of 1,000metres, overlying a cylindrical, higher grade semi-massive to massivesulphide zone at the contact between peridotite and gneiss. This basal sulphide-rich zone typically exceeded 1%Ni and contained up to 5.87% Ni, with thickness ranging from 2-25metres, strike of over 500 metres and is inferred to remain open alongstrike to the east and west. Sulphides comprise pentlandite, sometimesoccurring as coarse grains and loops in massive zones, together withpyrrhotite and chalcopyrite.
Offset styes of sulphide mineralisation within the hostgneiss are inferred from historical drill data, including an unminedcopper rich historical drill intercept immediately south of the minewhich remains open, in hole P-11-97:
-
1.4 metres at 4.3% Cu from 94.4 metres and
-
15.1 metres at 1.89% Cu from 148.6 metres, including8.7metres @ 2.35% Cu from 155.0 metres.
A 900 metre long, east-west conductor is observed atthe southern edge of the Bruvann mine and a second, 1.1 kilometre longnorth-south oriented conductor is observed to the north of the mine.Both conductors are proximal to the mapped contact between theintrusion and gneiss and were historically interpreted as beingrelated to graphitic units in the wall rock. The east-west conductoris immediately adjacent to the mined massive sulphide at Bruvann, andthe north-south oriented conductor has never been followed up.Kingsrose considers that the north-south conductor warrants furtherexploration to test whether massive sulphides are present.
Rånbogen is located 4.5 kilometres northeast of theBruvann Mine and is defined by a 1.6 kilometre long zone of anomalousnickel-copper in soils which coincides with several mapped ultramaficsills and lenses of outcropping massive and disseminated sulphidemineralisation.
Historical rock chip sampling from this zone includes30 samples exceeding 1% Ni, with a maximum of 2.3% Ni, coincident withshallow conductors identified by the 2006 SkyTEM survey. In 2006, thesoutheastern part of the Rånbogen prospect was drilled by SRH with 10holes totalling 2431.4 metres to a maximum depth of 371.2 metresdownhole. There are also two historical holes at the northern part ofRånbogen totalling 664 metres located 200 metres northeast of themineralised outcrops. Seven holes intercepted disseminated sulphidemineralisation with narrow zones of massive sulphide which remain open(Table 1). However, the orientation of mineralised zones was not wellconstrained, no follow up drilling has been conducted and thepotential extensions to depth have not been adequately explored withappropriate geophysical methods such as AMT(Audio Magnetotelluric) or EM (electromagnetic) surveys.
Table 1: Significant historical drill intercepts fromthe Rånbogen prospect
| (%) |
| (%) |
|
Arnes is located 2.5 kilometres north of the BruvannMine and comprises of upper pyroxenite grading into lower olivineperidotite, with irregular zones of disseminated sulphide and rarestringers of massive sulphide. Metal tenor at Arnes is low buthistorical drilling has intercepted broad zones of anomalous nickel sulphide mineralisation up to 48 metresthick grading 0.25% Ni from 34 metres downhole (SH-009). The base ofthe intrusion has not been intercepted at Arnes and the area remainsprospective for discovery of blind massive sulphide mineralisationtoward the base of the conduit.
Table 2: Significant historical drillintercepts from the Arnes prospect
| (%) |
| (%) |
Figure 2: Rana exploration project
Figure 3: Long section at Rånbogenthrough A-A’ (Figure 2), viewed east .
Figure 4: Long section at Bruvann Mine through B-B’(Figure 2), viewed north and showing historical, pre-miningdrilling
Figure 5: Cross section at Bruvann Mine through C-C’(Figure 2) viewed east and showing historical, pre-miningdrilling.
Figure 6: Massive sulphide in outcrop at Rånbogenwhere historical rock chip samples up to 2.34% Ni arereporte d
Figure 7: Historic drill core photos. Top left –massive pyrrhotite-pentlandite with pentlandite occurring as coarseloops (Bruvann BH-265-125, 1m @ 3.08% Ni); Top right – massivepyrrhotite-pentlandite (Rånbogen SH-004, 0.35m @ 2.52% NiS); Bottomleft – net-textured sulphides in poikilitic harzburgite cross-cut bysoft-walled sulphide vein (Bruvann, DH1061-01, 2m @ 0.7% Ni); Bottomright – massive sulphide vein breccia cutting olivine pyroxenite(Bruvann, BH-265-125, 1.25m @ 1.6% Ni)
About Kingsrose Mining Limited
Kingsrose MiningLimited is a leading ESG-consciousand technically proficient mineral exploration company listed on theASX. In 2021 the Company commenced a discovery-focused strategy,targeting the acquisition and exploration of Tier-1 critical mineraldeposits, that resulted in the acquisition of the Penikat andPorsanger PGE-Nickel-Copper projects in Finland and Norwayrespectively.
Qualified Person
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)
GlobalEnergy Metals Corp. offers investment exposure to the growingrechargeable battery and electric vehicle market by building adiversified global portfolio of exploration and growth-stage batterymineral assets.
Global Energy Metals recognizes that theproliferation and growth of the electrified economy in the comingdecades is underpinned by the availability of battery metals,including cobalt, nickel, copper, lithium and other raw materials. Tobe part of the solution and respond to this electrification movement,Global Energy Metals has taken a ‘consolidate, partner and invest’approach and in doing so have assembled and are advancing a portfolioof strategically significant investments in battery metalresources.
As demonstrated with the Company’scurrent copper, nickel and cobalt projects in Canada, Australia,Norway and the United States, GEMC is investing-in, exploring anddeveloping prospective, scaleable assets in established mining andprocessing jurisdictions in close proximity to end-use markets. GlobalEnergy Metals is targeting projects with low logistics and processingrisks, so that they can be fast tracked to enter the supply chain inthis cycle. The Company is also collaborating with industry peersto strengthen its exposure to these critical commodities and theassociated technologies required for a cleaner future.
Securing exposure to these criticalminerals powering the eMobility revolution is agenerational investment opportunity. Global Energy Metals believesNow is the Time to be part of this electrificationmovement.
For Further Information:
Global Energy MetalsCorporation
#1501-128 West PenderStreet
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
t. + 1 (604) 688-4219
www.globalenergymetals.com
Twitter: | |
Cautionary Statement on Forward-LookingInformation:
Certain information in this release mayconstitute forward-looking statements under applicable securities lawsand necessarily involve risks associated with regulatory approvals andtimelines. Although Global Energy Metals believes the expectationsexpressed in such forward-looking statements are based on reasonableassumptions, such statements are not guarantees of future performanceand actual results or developments may differ materially from those inthe forward-looking statements. Except as required by law, the Companyundertakes no obligation to update these forward-looking statements inthe event that management’s beliefs, estimates or opinions, or otherfactors, should change.
GEMC’s operations could besignificantly adversely affected by the effects of a widespread globaloutbreak of a contagious disease, including the recent outbreak ofillness caused by COVID-19. It is not possible to accurately predictthe impact COVID-19 will have on operations and the ability of othersto meet their obligations, including uncertainties relating to theultimate geographic spread of the virus, the severity of the disease,the duration of the outbreak, and the length of travel and quarantinerestrictions 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 information on Global Energyand the risks and challenges of their businesses, investors shouldreview the filings that are available at www.sedar.com.
Neither TSX Venture Exchange nor itsRegulation Services Provider (as that term is defined in the policiesof the TSX Venture Exchange) accepts responsibility for the adequacyor accuracy of this release.
We seek safe harbour.
Copyright (c) 2023 TheNewswire - All rights reserved.