Global Energy Metals Corp (CSE:GEMC) has made the first option payment under a deal to gain an interest in two prospective cobalt projects in Nevada.
The Vancouver-based company has issued 384,627 of its shares to Nevada Sunrise and paid US$20,000 to the underlying vendor as part of the agreement to acquire an 85% interest in the Lovelock cobalt mine, which is noted for its high-grade cobalt-nickel-copper potential, and the adjacent Treasure Box project
In a brief statement Tuesday, GEMC also added it is reviewing exploration plans for both properties, which are in Churchill County, around 150 kilometers east of the Tesla Gigafactory in Sparks, Nevada.
The program will assist with an ongoing extensive review and reinterpretation of historical data.
"There has been a tremendous amount of attention placed on the US for it to stop being merely a bystander in the global battery arms race and start developing more domestic supplies of battery metals such as cobalt, nickel and copper to supply its homegrown battery factories, including Nevada-based Gigafactory 1," said Mitchell Smith, director and CEO at GEMC.
"The Lovelock and Treasure Box projects are prime examples of US-based battery metal projects that are very prospective and strategically located in close proximity to a domestic end-user with a large appetite for the critical materials used in EV and energy storage technology."
The consideration, over two years, is US$75,000 in cash, as well as more than 1.72 million shares at a deemed price of $0.15 each and more than 1.6 million reimbursement shares.
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 $0.05
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.
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