Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) (FRA:5GE1) has announced an agreement to sell its 70% interest in the Werner Lake project, located in Ontario’s Kenora Mining District, to CBLT Inc (CVE:CBLT).
CBLT will pay Global Energy Metals $20,000 in cash plus $250,000 in CBLT stock, which equates to 5 million shares at a deemed price of $0.05 per share. Global Energy Metals will also receive 3.5 million CBLT warrants, each exercisable at $0.08 per share with a two-year term.
Global Energy Metals CEO Mitchell Smith said in a statement: "This transaction will provide GEMC's shareholders exposure to CBLT's potential future growth through a meaningful equity stake in a resource focused company that is accelerating battery and precious metals exploration efforts in Ontario, Canada. GEMC will continue to look for opportunities to expand the equity holdings by the Company strengthening its exposure to the battery supply chain."
READ: Global Energy Metals forms US subsidiary to capitalize on rising interest in the electric vehicle supply chain
Upon closing, Global Energy Metals will own approximately 11% of CBLT on a fully-diluted basis, which will provide the company with exposure to it’s battery and precious metals portfolio, including positions in Marquee Resources Ltd (ASX:MQR) as well as a significant interest in Electric Royalties Ltd (CVE:ELEC).
Should the Werner Lake project reach commercial production, Global Energy Metals would also receive a milestone payment of $500,000 from CBLT.
As well, if CBLT were to sell or option the Werner Lake asset, or a portion thereof, during the 24 months following closing, Global Energy Metals would receive 20% of the gross proceeds of the sale. The company has also agreed to deliver to CBLT all technical data related to Werner Lake in the company’s power, control or possession.
Global Energy Metals recently formed a new US subsidiary, US Battery Metals Corporation, to capitalize on rising national interest in the battery minerals sector. Its first holdings will include the recent acquisition of an 85% stake in the Lovelock and Treasure Box battery metals projects in Nevada, close to Tesla’s Gigafactory to manufacture lithium-ion batteries for its cars.
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