Global Energy Metals Corp (CVE:GEMC) (OTCMKTS:GBLEF) released news Thursday, that the firm has received regulatory approval for a deal that will see it use Canada Cobalt Works' Re-2OX technology for one year, with an aim to rapidly advance its Lovelock cobalt mine and Treasure Box projects in Nevada.
Canada Cobalt Works has a proprietary process known as Re-2OX that extracts cobalt, precious metals and base metals without using a traditional smelter.
The Re-2OX technology is compelling -- it skips the normal smelting process to achieve high recovery rates for cobalt, nickel and copper, while also removing 99% of arsenic. The move expands the potential of the Lovelock mine and could potentially create battery-grade cobalt sulphate.
READ: Global Energy Metals signs agreement with Canada Cobalt Works to use Re-2OX to extract battery grade product
The Lovelock cobalt mine and Treasure Box projects are located in Churchill County, around 150 km east of the Tesla Gigafactory in Sparks, Nevada.
The Re-2OX technology is part of a wider exploration and drill program, which will help give better understanding of the potential of GEMC's Nevada-based projects.
The Lovelock and Treasure Box projecs represent a "unique opportunity to make a new battery metals discovery in Nevada, a proven mining district ranked as the most attractive mining jurisdiction by the Fraser Institute's Annual Survey of Mining Companies, 2018," noted the company in a release.
Global Energy Metals is currently pulling together plans for its exploration and drilling campaigns to advance the battery metals project.
As part of the agreement, GEMC will pay Canada Cobalt Works a cash payment of C$50,000 and issue 2 million units of GEMC at $0.075 per unit for a total of $150,000.
GEMC holds a number of projects
In addition to the two Nevada projects, in which the firm has an option to acquire an 85% interest in, Global Energy Metals also owns 70% of the Werner Lake Cobalt Mine in Ontario, and has entered into an agreement to acquire 100% of the Millennium Cobalt Project and two neighbouring discovery stage exploration-stage cobalt assets in Mt. Isa, Australia.
Shares of GEMC were trading at C$0.08 in Canadian trading on Thursday.
Contact Katie Lewis at [email protected]