GBLEF - Global Energy Metals Signs Term Sheet with Metal Bank Limited to Advance its Millennium Cobalt-Copper-Gold Project in Queensland Australia
(TheNewswire)
Vancouver, BC - TheNewswire - June 7, 2021 - GlobalEnergy Metals Corporation ( TSXV:GEMC ) | ( OTC: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 that it has entered into a binding Term Sheet with Metal BankLimited (“MetalBank” and/or “MBK”) for a 6 month exclusive option(“Option”) in favour of MBK to earn-in and joint venture theMillennium Copper, Cobalt and Gold Project in Mount Isa, Queensland(“Millennium Project”) owned by GEMC’s wholly owned subsidiary,Element Minerals Australia Pty Ltd (“EMA”).
The MillenniumProject is an advancedexploration and development project located in the Mount Isa region,19km from the Rocklands copper-cobalt project which is host to 55.4Mtof Resources grading 0.64%Cu, 0.15 g/t Au, 290ppm Co (0.90%CuEq) 1 . The MillenniumProject holds an inferred 2012 JORC resource of 5.89MT @ 1.08%CuEq 2 across 5 grantedMining Leases with significant potential for expansion.
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- Global Energy Metals and MetalBank Limited (ASX:MBK) have signed a binding Term Sheet for a 6 monthexclusive option for MBK to earn-in and joint venture GEMC’sMillennium copper-cobalt-gold Project in Queensland;
- Millennium contains an inferred Cuequivalent Mineral Resource of 5.89MT 2 with substantial growth upside;
- Millennium presents as anexcellent opportunity to advance and develop a copper-cobalt asset ofsignificant size in close proximity to processing solutions andexcellent infrastructure in the Mount Isa region;
- During the proposed exclusive 6month option period, MBK will undertake further due diligence andsole-fund an initial exploration program;
- At the end of the Option Period,MBK will have the right to commence a formal earn-in to the Project toearn up to an 80% interest; and
- The transaction advances GEMC’sobjectives of monetizing its existing projects by unlocking unrealizedvalue and advancing projects through partner funded exploration; and
- GEMC retains project levelexposure while diversifying its equity holdings in a well managed company that is creatingvalue through a combination of exportation success and quality projectacquisition.
1CDU:ASX Announcement dated 31October 2017
2 HMX ASX Announcement dated 6December 2016 “Millennium Mineral Resource Estimate”.
Copper equivalent (CuEq)calculation was based solely on commodity prices using prices asfollows: Cu: US$4,600/t; Co: US$27,000/t; Au: US$1,330/oz; and Ag:US$20/oz
Mitchell Smith, President and CEO ofGlobal Energy Metals commented:
“ Global Energy welcomes the opportunity topartner with Metal Bank to fund a phased work campaign at ourMillennium Cobalt-Copper-Gold project, which presents as an excellentopportunity for successful exploration and development of a highlyprospective battery metal project. Additionally , it provides GEMCwith continued exposure to the project through both maintained project level ownership and asizeable equity interest in Metal Bank.
Led by Inés Scotland, Guy Robertson, Sue-Ann Higgins and RhysDavies, the Metal Bank team has a track record of global successincluding several discoveries that have proceeded to mine developmentand project sale generating billions of dollars. This extensiveexperience, transactional know-how and industry pedigree that will beput to use by the MBK team to aggressively advance the Millenniumproject is a significant opportunity for Global Energy Metals and itsshareholders.”
Commenting on the transaction, InésScotland, MBK Chair said:
“ Our agreement with GEMC provides MBK withan option to earn-in to an advanced copper-cobalt asset of significantsize with excellent expansion potential and an accelerated pathway toproduction.
The marketfundamentals for copper and cobalt are extremely favourable and weconsider there is significant growth potential across the projectarea. We are excited to be partnering on this project with GEMC, acompany advancing and building a diversified global portfolio ofexploration and growth-stage battery mineral assets.
This transaction is an excitingopportunity for MBK and its shareholders in pursuit of our strategyfor diversification and growth, providing exposure to copper andcobalt which are in demand, vital components in the production ofelectric batteries, in addition to our existing portfolio of goldassets in Queensland.”
Commencement of the Option is subject to MBK and GEMCfinalising and signing a formal Option Agreement prior to 30 June2021. GEMC have granted MBK a right of exclusivity in relation tothe Millennium Project for this purpose, in consideration of MBK’spayment of AUD $10,000.
MBK will make a further AUD $10,000 payment to GEMCupon signing the Option Agreement.
During the proposed Phase 1 exclusive 6-month optionperiod, MBK will undertake further due diligence and complete aninitial exploration program to confirm the potential formineralisation in the northern half of the tenement package.
At the end of the option period, MBK will have theright to commence a formal earn-in to the Project to earn up to an 80%interest over Phases 2 and 3 below:
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- Phase 2 – MBK to earn a 51% interest in the Projectby issuing AUD $250,000 of MBK Shares to GEMC and sole fundingexploration expenditure of $1M;
- Phase 3 – MBK to earn an additional 29% interest(taking its total interest to 80%) by issuingAUD $350,000 of MBK Shares to GEMC and sole funding expenditure of AUD$2M; and
- Phase 4 – GEMC may elect to require MBK to buy outGEMC’s remaining 20% interest for shares in MBK at a value to beagreed, and failing such election, both parties are to fundexpenditures in proportion to their respective interests.
The Term Sheet also includes a buy-out option at theend of Phase 2, allowing MBK to acquire an additional 29% (taking itstotal interest to 80%) for AUD $1.5M of MBK Shares and AUD $1M incash, with the joint venture then proceeding immediately to Phase4.
The terms of the Term Sheet are summarized in detailbelow.
Summary of Term Sheet
MBK has been granted a right of exclusivity from thedate of the Term Sheet to 30 June 2021 in consideration of the paymentof AUD $10,000 to GEMC. The right of exclusivity will extend throughthe Option Period following signing of an Option Agreement.
During the initial period, MBK and GEMC will finalisean Option Agreement and detailed earn-in and joint ventureterms.
MBK’s exclusive option to earn-in and joint venturethe Project will commence upon signing the Option Agreement andpayment of a further AUD $10,000 payment to GEMC, and will continuefor a term of 6 months (Option Period).
During the Option Period MBK will complete the Phase 1Work Program described below.
On or before expiry of the Option Period, MBK may givenotice to GEMC exercising the exclusive Option to earn-in and jointventure the Project and move to Phase 2.
If MBK does not exercise the option then the agreementis at an end.
At the commencement of Phase 2, MBK issue theequivalent of AUD $250,000 in MBK shares to GEMC and MBK will solefund exploration expenditure of AUD $1M on the Phase 2 Work Programdescribed below to earn a 51% interest in the project.
Upon completing its Phase 2 expenditure commitment, MBKmay:
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- elect to earn the 51% interest and either:
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- form the joint venture and move to Phase 3;
- give notice to buy-out 29% of GEMC’s remaininginterest, with BMK taking an 80% interest in the project inconsideration of the payment by MBK of AUD $1M and issue of AUD $1M ofMBK shares to GEMC. In the event such notice is give the jointventure will be formed on an 80% MBK, 20% GEMC basis; or
- withdraw without earning any interest.
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At the commencement of Phase 3, MBK issue theequivalent of AUD $350,000 in MBK shares to GEMC and a Joint Venturewill be formed with MBK sole funding and managing. During Phase 3, MBKwill sole fund exploration expenditure of AUD $2M on the Phase 3 WorkProgram described below to earn an additional 29% interest in theproject, taking MBK’s total interest to 80%.
Upon MBK completing its Phase 3 expenditure commitmentand moving to an 80% interest, EMA may elect to require MBK to buy outEMA’s remaining 20% interest for shares in MBK at a value to beagreed.
If EMA does not make this election, both parties willjointly fund exploration, feasibility and development expenditure intheir proportionate shares, with each parties’ interest diluted inaccordance with a standard industry dilution formula should either MBKor GEMC not contribute.
Proposed MBK Option, Earn-in and JVWork Programs
Note: Work programs are indicativeand may change subject to exploration results.
Phase 1 – Option Period
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- detailed geological mapping
- infill pXRF soil survey (25m spacing) and mapping torefine drilling locations
- reconnaissance drilling up to 4 reverse circulation(“RC”) holes (2 section lines) for up to 500m at Millennium North
Phase 2 - Earn-in – Resource andexploration drilling
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- Millennium Resource
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- 2 x deep down dip extension test holes – for 600m(RC/DD)
- 6 x resource infill holes – for 900m (RC/DD)
- Millennium North
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- 14 holes on 7 section lines at 100m spacing –2,800m (RC)
- Federal/Corella Trend
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- early reconnaissance exploration - up to 4 x RC holesfor up to 600m (RC)
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Phase 3 - Joint Venture – Resourceupgrade and commencement of feasibility study
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- Millennium Resource upgrade (drill-out) – up to2,500m Diamond drilling
- Update Mineral Resource Estimate
- Commencement of feasibility study
Phase 4 – Joint Venture
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- Completion of bankable feasibility study
- Development approvals
- Development
- Mining
The Millennium Project
The Millennium Project is a significant advancedcopper-cobalt-gold project with a large defined zone of copper-cobaltmineralisation that remains open for expansion at depth and alongstrike. Copper-cobalt mineralisation is associated with shear zoneshosted within a sequence of volcanic and sedimentary units.
The Millennium Project is strategically located ongranted mining leases, less than 20 km from the Rocklands mine siteand processing facility and within the economic and infrastructure hubof Mount Isa, Queensland. The Mt. Isa Mineral Province isrecognized as a world-class mining region, with more than a quarter ofthe world’s lead and zinc reserves, 5% of the world’s silverresources and 1.5% of the world’s copper resources.
In 2017 and 2018, GEMC conducted a 10-hole, 1,141 metredrilling campaign on the Millennium Project to test the up-dipcontinuity at the Millennium North deposit and confirm historicalestimates of cobalt mineralization reported in 2016 by Hammer Metals. The program was successful in both duplicating historical results,demonstrating the continuity of mineralisation within the mineralisedzone and in determining mineralisation continues to depth, including28m @0.35% Cu and 0.2% Co (MIRC026). Significantly, cobalt and coppermineralisation was encountered along the entire targeted 1,500 metrestrike length with the zones remaining open in all directions.
Mapping, soil geochemistry and rock sampling conductedby GEMC identified an additional 1.5 km of anomalous cobalt-coppermineralisation in geological analogues that occur along a potentialstrike extension in the northern half of the tenement package(“ NorthernExtension ” ). This area has no previousdrilling to date and provides an excellent opportunity to increase theoverall resource potential of the Millennium Project. TheMillennium mining leases also include the Corella and Federalprospects, along a parallel zone of significant surface Cu-Co-Auanomalism and historical workings, that are untested by drilling andprovide yet further potential to grow the resource base (Figure1).
Figure 1. Map showing existingMillennium resource zone and exploration targets
Rock chip sampling was also conducted by GEMC to testfor additional zones of cobalt and copper mineralisation along theMillennium trend and in particular the Northern Extension wheresimilar host rock units and strong soil geochemical anomalies arelocated. This zone is located approximately 1 kilometre north of thecurrent Millennium Resource as defined. The continuation of elevatedsoil arsenic and copper geochemistry and presence of anomalous cobaltand copper in rock chip samples and analogous geology between theMillennium Resource area and the Northern Extension indicate that thisarea is a priority target for further investigation.
GEMC also conducted initial metallurgical testwork onthe Millennium Project in 2018, reporting cobalt and copper recoveriesexceeding 95%.
Fore more information on the Millennium Project pleaserefer to the Company’s website:https://www.globalenergymetals.com/projects/millennium-cobalt-project/
Metal Bank Limited
Metal Bank Limited is an ASX-listed mineralsexploration company (ASX:MBK).
Metal Bank’s core focus is creating value through acombination of exploration success and qualityproject acquisition. The company’s key projects are the 8 Mile andEidsvold gold projects situated in the northern New England Fold Beltof central Queensland, which also hosts the Cracow (3 Moz Au), MtRawdon (2 Moz Au), Mt Morgan (8 Moz Au, 0.4Mt Cu) and Gympie (5 MozAu) gold deposits. The projects are both associated with historicalgoldfields and represent intrusion related gold systems (IRGS) withmulti-million-ounce upside.
The Company has an experienced Board and managementteam which brings regional knowledge, expertise in early stageexploration and project development, relevant experience in the midcap ASX-listed resource sector and a focus on sound corporategovernance.
The Company is committed to a strategy ofdiversification and growth through identification of new explorationopportunities which complement its existing portfolio and pursuit ofother opportunities to diversify the Company’s assets throughacquisition of advanced projects or cash-flow generating assets toassist with funding of the exploration portfolio.
In pursuit of this strategy, the Company is activelyreviewing new opportunities within Australia with a number of thirdparties under confidentiality arrangements. In addition, the Companyis continuing to work with government and stakeholders in the MENAregion with a view to securing an advanced copper exploration project.
Qualified Person
Mr. Paul Sarjeant, P. Geo., is the qualified person forthis release as defined by National Instrument 43-101 - Standards ofDisclosure for Mineral Projects.
Global Energy MetalsCorporation
(TSXV:GEMC | OTC:GBLEF| FSE:5GE1)
Global Energy 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 thatthe proliferation 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 in this cycle. The Company isalso collaborating with industry peers to strengthen its exposure tothese critical commodities and the associated technologies requiredfor a cleaner future.
Securing exposure to these criticalminerals 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 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 responsibility for the adequacy or accuracy of thisrelease.
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