Global Energy Metals Corp (CSE:GEMC) (OTCMKTS:GBLEF) said Thursday that it has signed final agreements with Hammer Metals Ltd (OTCMKTS:HMRRF) to acquire 100% of the Millennium cobalt project and the Mount Isa cobalt projects in Australia.
In 2017, GEMC inked a deal with Hammer that allowed it to acquire a 75% stake by spending C$2.5 million within three years. As of March of this year, it had paid at least C$500,000 and owned a 25% interest.
READ: Global Energy Metals positions itself as leading cobalt explorer in Mount Isa region with acquisition
The Vancouver-based buyer said in a press release Thursday that it identifies Millennium as growth-stage while Mount Ida is highly prospective. Global Energy added that the deal with Mount Lawley, Australia-based Hammer is subject to exchange approval.
According to GEMC, the Millennium project is a multi-zone, near-surface cobalt-copper sulphide system with several kilometers of potential strike length as defined by drilling, prospecting and geophysics. Two zones were tested during the first phase of exploration, and results from both exceeded grade and thickness expectations, according to GEMC.
Shares of GEMC traded at C$0.06 in Wednesday’s Canadian trading. They slipped US$0.01 to US$0.04 on the OTC market.
Earlier in November, Global Energy Metals said its partner Marquee Resources Ltd had entered into a non-binding supply agreement with a Chinese manufacturer of battery cathode materials.
Contact Dennis Fitzgerald at [email protected]