Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) updated shareholders on Thursday, saying it had launched a processing program in Nevada and cancelled a previously announced private placement.
The junior company announced earlier this month 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 inks deal with Canada Cobalt Works to use Re-2OX to extract battery grade product
GEMC said that, in conjunction with Canada Cobalt Works, work has commenced in Nevada related to the Re-2OX process through a reconnaissance program at Lovelock and Treasure Box.
As part of the agreement, Canada Cobalt Works was to take an immediate equity position in GEMC of 2 million units at $0.075 per unit for a total of $150,000. The company announced that the placement will not go through at this time due to a TSX Venture Exchange policy that outlines Tier 2 issuers are not permitted to purchase securities of other reporting issuers for cash, either in the secondary market or as a private placement from treasury.
Meanwhile, initial fieldwork is demonstrating the potential to identify high-grade cobalt, nickel and copper mineralization over broader areas than originally believed at Lovelock and Treasure Box.
Shares of GEMC were trading at C$0.09 in Canada and US$0.06 on OTC markets.
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