(TheNewswire)
Vancouver, BC - TheNewswire - October 19, 2021 - GlobalEnergy Metals Corporation ( TSXV:GEMC ) | ( OTCQB:GBLEF ) | ( FSE:5GE1 ) (“Global Energy Metals”, the “Company” and/or“GEMC ”), a company involvedin the investment exposure to the battery metals supply chain, ispleased to announce the signing of a letter of intent between ElectricRoyalties Ltd. (“Electric Royalties” and/or “ELEC”) andScandinavian Resource Holdings (“SRH”) to create a new 1% NetSmelter Royalty (the “1% NSR”) on four exploration licensestotaling 25 square kilometers in the Råna mafic-ultramafic intrusionin Northern Norway and includes the past producing Bruvann Nickel mine(the “Råna Project” or “Råna”).
Rana Nickel Royalty AcquisitionHighlights
- Includes the past producing Bruvann Ni-Cu-Co minewhich has significant historical resources remaining after productionshut down in 2002, following 13 years of production due to low nickelprices;
- Located adjacent to main north-south highway and inan area with a long history of mining and skilled manpower;
- Available mine infrastructure includes power, roads,and conveyor from mine site to existing port facilities;
- Large historical drill database demonstratingcompelling near mine exploration potential;
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- Underexplored property with demonstrated explorationpotential and re-start potential; and
- GEMC to receive cash and share equity in ElectricRoyalties further increasing its exposure to the company and itsgrowing portfolio of technology enabling metal projects.
Mitchell Smith, CEO of Global EnergyMetals commented:
“ We are excited to partner again withElectric Royalties and strengthen our ownership in their company whilebenefiting further from the added exposure our shareholders will gainthrough Electric’s impressive royalty portfolio and the rawmaterials that are building an electrified future. We see Electricas the perfect partner to strengthen awareness about the Rana Projectand attract further investment to advance this important class-1sulphide nickel project.”
Brendan Yurik, CEO ofElectric Royalties commented:
“We are very pleased to add Ranato our royalty portfolio as it represents our first exposure tonickel. Furthermore, we are excited about the potential of themine’s restart as well as the prospectivity of the surrounding landpackage. The mine was shut down in 2002 due to low nickel priceswhich averaged less than $4/lb during its operation. Marketconditions have now changed and nickel prices are more than doublewhat they were when the mine shut down. Given the projects excellentjurisdiction, good infrastructure and available skilled workforce webelieve that Rana has excellent potential to help supply the nickelrequired to transition the world away from fossil fuels and toward adecarbonized global economy.”
Rana Project Overview
The RånaNickel-Copper-Cobalt project isjointly held by GEMC and SRH and located on the Ofoten Fjord inNorthern Norway and is ice-free year-round. The project includes thepast producing Bruvann Ni-Cu-Co mine which was in production from 1989until 2002 and processed 8.2 million tonnes of ore at an average gradeof 0.52% Ni, 0.1% Cu and 0.02% Co.
A historical estimate of the remaining resource is 9.15million tonnes at approximate grades of 0.36% Ni, 0.09% Cu and 0.01%Co above a cut-off of 0.3% Ni. 1 Themineralization is reported to be open in several directions.
The estimate was obtained from a report prepared by theNorwegian Geological Survey (NGU). No classification of the estimatewas reported. The estimate is historical in nature and does notqualify as mineral resources under CIM Definition standards and NI43-101. A qualified person under has not done sufficient work toclassify the estimates as current mineral resources and the Company isnot treating them as current.
Bruvann is located 2 km away from a shippingdock with an existing conveyor connecting dock facilities from themine site. Mine roads and power facilities as well as some of themine buildings have been maintained and the main North-South highwayin the region crosses the property.
For more information on the Rana Project please referto GEMC’s website linkedhere .
1 The past production and historicalestimate for the Råna Project is reported in Carl Olaf Mathiesen andRognvald Boyd, 2017: History of exploration of the nickel resources ofthe Råna Intrusion, Nordland, Norway, NGU Report 2017.31, availableat https://www.ngu.no/upload/Publikasjoner/Rapporter/2017/2017_031.pdf .
Terms
Electric Royalties is creating the 1% NSR on the RånaProject for a total consideration of 2,000,000 common shares of theCompany (“Consideration Shares”) and $100,000 cash payable to GEMCand SRH payble to GEMC and SRH in proportion to ownership. TheConsideration Shares will be subject to a voluntary escrow lock-upagreement which provides that 50% of the common shares will be subjectto a hold period of 4 months and one day, 25% for 8 months and theremaining 25% for 12 months. The transaction noted herein is subjectto completion of due diligence, approval of the TSX Venture Exchangeand other customary conditions.
QualifiedPerson
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 | OTC: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 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 responsibilityfor the adequacy or accuracy of this release.
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