Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) is advancing its properties in Nevada with a new strategic initiative designed to create a potential battery-grade test product.
The company announced Tuesday that it had signed a memorandum of understanding with Canada Cobalt Works (CVE:CCW), a junior company with a proprietary process known as Re-2OX that extracts cobalt, precious metals and base metals without using a traditional smelter.
The deal allows for cobalt-, nickel- and copper-bearing material from Global Energy Metals’ Lovelock and Treasure Box projects to go through the Re-2OX process to confirm efficient battery metal extraction with the aim of creating a battery-grade test product.
READ: Global Energy Metals closes oversubscribed financing; raises $800,000 for exploration and development at Nevada projects
Lovelock and Treasure Box are located in Churchill County, a 90-minute drive from the Tesla-Panasonic Gigafactory 1 in Nevada.
Under the terms of the strategic investment, CCW will take an immediate equity position in GEMC of 2 million units at $0.075 per unit for a total of $150,000. Each unit consists of one share and one warrant exercisable at $0.10 for 36 months from the closing date.
Canada Cobalt will oversee the testing process in order to protect its intellectual property and results will be delivered to Global Energy Metals, which will also pay a C$200,000 up front fee.
"Partnering with Canada Cobalt Works and utilizing their Re-2OX Process is a crucial step in unlocking the potential Lovelock and Treasure Box provide for shareholder exposure to strategically important US-based battery mineral assets,” said GEMC’s CEO Mitchell Smith. “Significantly, Re-2OX has allowed Canada Cobalt to become the first company in Canada's cobalt heartland to produce a battery-grade cobalt sulphate test product with nickel-manganese-cobalt formulations in their pipeline."
Canada Cobalt president and CEO Frank Basa said that the two companies have a “shared objective” of advancing the metallurgical understanding of GEMC's battery metal assets using Re-2OX.
“The very adaptable Re-2OX process has shown very high recovery rates for multiple metals and the ability to create a compound suitable for end-use in battery production,” he said in a statement.
Re-2OX testing of material from Lovelock and Treasure Box will be part of a broader exploration work program that will allow for reinterpretation of historic data and a better understanding of the ability to unlock the cobalt, nickel and copper potential from these Nevada projects, according to Global Energy Metals.
Shares of Vancouver-based Global Energy Metals were trading at C$0.07 in Toronto and at US$0.05 on OTC markets on Tuesday morning.
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