Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) revealed it is boosting its portfolio with a new strategic investment in the Råna nickel project in Norway.
The acquisition includes an interest in a portfolio of four exploration licences from Scandinavian Resource Holdings Pty Ltd and a 1% net smelter return (NSR) royalty on the property from Chincherinchee Nominee Pty Ltd.
The project portfolio includes three exploration licences covering the past-producing Bruvann Nickel Mine and a fourth exploration licence to the west, which collectively forms the Råna project.
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Råna covers 25 square kilometres around the south shore of Ofotfjord, which is ice-free year-round and two kilometres away from a shipping dock and other infrastructure. The project is also in close proximity to a growing end-user market including FREYR AS, a Norwegian incorporated company that is developing environmentally friendly lithium-ion based battery cell facilities in Norway.
The Råna intrusion hosts the Bruvann nickel, copper and cobalt mine with nearly 9.2 million tons remaining resources in the underground mine.
In a statement, GEMC told shareholders that Råna represents “one of the few drill-ready, low capex Class-1 nickel opportunities globally,” with strong mining potential and exploration upside. The firm noted that Råna could be a future source of material to be used in rechargeable batteries.
“In an environment of robust battery demand, the pressure for nickel will grow proportionately,” GEMC CEO Mitchell Smith said in a statement. “Having exposure to Class 1 nickel product suitable for battery manufacture through the Råna Nickel Project is a significant opportunity for Global Energy Metals and its shareholders.
"As Norway continues to lead the charge in electric vehicle adoption it is leveraging its plentiful renewable green energy sources to establish a European presence as a sustainable battery hub. Projects such as this will be extremely important to the realization of increasing value creation for a regionalized, independent supply chain for key raw materials like nickel.”
As per the term sheet, GEMC will issue 3.3 million shares in exchange for 10% interest and a 1% NSR on Råna. GEMC will have a carried interest on the project and will not be responsible for any project costs until the vendor incurs more than C$1.5 million in project expenditures. Shares will be released in batches over a 12-month period.
The vendor or royalty holder has the right to purchase 50% of the NSR for C$1 million before commercial production starts.
GEMC said it intends to work alongside the vendor to attract strategic partners to fund project development at Råna.
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