Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) announced plans to acquire a 50% interest in three new battery metal projects on Tuesday.
The Vancouver-based company said it had entered into a letter of intent with DG Resource Management for a portion of its Monument Peak copper-silver-gold project in Idaho; Chance Lake nickel-copper-cobalt project in Quebec, and Amiral nickel-copper-PGEs in Quebec.
GEMC said that the acquisition is part of an ongoing effort to amass battery metals-rich projects in top-tier mining jurisdictions with exploration and development upside.
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“The ongoing consolidation of strategically located battery metals projects, has allowed Global Energy Metals to establish itself as a dominant holder of highly prospective critical metals projects with strong exploration and development upside,” Mitchell Smith, GEMC’s CEO said in a statement.
“The addition of Idaho, US-based Monument Peak, and the Quebec-based Chance Lake and Amiral properties complement our current portfolio and provides the company with added exposure to North American copper, cobalt, silver and nickel at a time when quality resource projects are needed to supply an apparent decades long growth cycle in demand of vehicle electrification and stationary energy storage.”
Monument Peak is an exploration-stage project that consists of 69 claims covering approximately 1,380 including two small past-producing copper mines. Chance Lake is situated within the Labrador Trough and consists of 16 contiguous claims covering approximately 777.7 hectares. Amiral is an early-stage project located within the Grenville Geological Province with two zones of mineralization identified by previous owners.
To acquire a 50% stake in each project, GEMC will make a cash payment of C$200,000 and issue 1.75 million shares and an additional 1.75 million warrants exercisable at $0.30 for a two-year period. The firm will advance $100,000 of the cash payment for project advancement initiatives, including the completion of a technical report on Monument Peak, GEMC said.
GEMC plans to work with DG Resource Management to attract strategic partners to fund future project development at the projects in conjunction with exploration activities, it said.
In addition, GEMC said it is offering a minimum of two million units priced at C$0.25 to help fund the acquisition, as well as business development and working capital purposes. Each unit is comprised of one share and one warrant exercisable at C$0.30 for two years.
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