Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) is poised to bring in a gross sum of C$500,000 from a private placing to advance its battery metals development aims.
The firm said it plans to carry out the financing after it has completed a 10:1 share split that it announced on March 10. The group will issue up to around 6.6 million units at a post-consolidation price of $0.075 each.
READ: Global Energy Metals secures non-dilutive financing through royalty sales on Australian projects
GEMC is advancing and acquiring an 85% interest in the Lovelock and Treasure Box projects in Nevada, USA, which it believes will provide the foundation to develop a domestic US supply of battery metals critical to national and economic security.
Energy security has, for decades, been high on the US agenda of politics and defense, but only recently has it included minerals and metals, which are now deemed 'critical', noted GEMC in a statement on Monday.
"The transition to a clean-energy world using battery technology is being considered as one of the largest investment opportunities of the decade," Mitchell Smith, president and CEO commented.
"Global Energy Metals is building a company to provide its shareholders exposure to this growing investment trend. This financing sets a path forward to further validate our role in the cobalt and battery mineral supply chain through the acquisition and development of cobalt-nickel-copper projects located in Nevada, a premier mining jurisdiction."
Each unit in the placing consists of one post-consolidation share and one share purchase warrant. Each warrant entitles the holder to buy one additional post-consolidation share in the company at $0.10 for three years.
Option to fund future development
The firm added that this financing complements last month's commitment by Electric Royalties, which provides GEMC with an attractive form of financing and short term investments via the spin-out of a small royalty on its Queensland, Australian projects.
The royalty also provides an option to fund future development at Millennium and the Mount Isa projects in Australia in a non-dilutive manner and create an opportunity for cross marketing promotion with a strong royalty partner, said GEMC.
The firm aims to use the proceeds of the placing to begin stage-two exploration work and earn an 85% interest in the Nevada based battery metals projects.
The cash will also be used for new technologies related to building battery mineral supply chain to power a clean energy future, and for general corporate purposes, it said.
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