Global Energy Metals updates on Nevada cobalt project option
Global Energy Metals Corp (CSE:GEMC) said the TSX venture has accepted for filing the option agreement regarding two prospective cobalt projects in Nevada.
Nevada Sunrise Gold Corp has granted the company the option to acquire an 85% undivided interest in the Lovelock cobalt mine and the Treasure Box project in Churchill county in Nevada.
The consideration, over two years, is US$75,000 in cash, as well as over 1.72 million shares at a deemed price of 15 cents each and over 1.6 million reimbursement shares to Nevada. These are to reimburse share payments made according to the underlying option held by Primus Resources. Reimbursement shares are subject to a floor price of five cents.
Primus will retain a 2% net smelter return (NSR) royalty, with the company and Nevada, as joint venture partners, having the right to purchase one-half (1%) for 10 years from the effective date of the Primus underlying option for US$1.5 million, said Global Energy Metals.
Significantly, the Nevada assets are drill ready and eight diamond drill targets have been identified, in addition to geological mapping, chip and channel sampling and geophysics, GEMC has said previously.
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