Global Energy Metals Corp (CVE:GEMC) (OTCMKTS:GLBEF) (FRA:5GE2) said it has completed its acquisition of a 10% strategic interest in the Råna nickel-copper-cobalt project in Norway, which includes the past-producing Bruvann nickel mine.
As part of the transaction, the company will also acquire a 1% net smelter return (NSR) royalty on the property from Chincherinchee Nominee Private Limited.
“Sourcing and developing materials for battery production made with renewable energy under strong ethical and governance frameworks is key to GEMC’s strategy,” Global Energy Metals CEO Mitchell Smith said in a statement.
“As an emerging European battery manufacturing hub in the Scandinavian Peninsula, Norway is not only one of the world's most prolific nickel districts but also has the added benefit of leading the charge in renewable energy,” Smith added.
Global Energy Metals will issue 3.3 million of its shares in exchange for a 10% interest in Råna in addition to the 1% NSR. The shares are subject to a statutory hold period of four months and one day from the date of the issuance.
The company noted that Råna is one of the few drill-ready Class-1 nickel projects globally with low capex anticipated to get it up and running, while also being located 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.
It added that the Bruvann nickel (with copper and cobalt) mine, which operated from 1989 to 2002 at an average nickel price below US$4 a pound, has 9.15 million tonnes of resources remaining in the underground mine.
As well, Global Energy Metals said Bruvann resembles Canada’s world class Voisey’s Bay deposit and other major nickel deposits.
Global Energy Metals provides investors with exposure to the growing rechargeable battery and electric vehicle market by building a diversified global portfolio of exploration and growth-stage battery mineral assets.
The Vancouver, British Columbia-based junior holds interests in several precious and battery metals projects globally.
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