Global Energy Metals enters emerging European battery hub with Rana investment (GEMC, GBLEF, 5GE1)

Global Energy Metals (TSXV:GEMC | OTC:GBLEF | FSE:5GE1) has now signed a definitive agreement to make a strategic investment in Norway’s Råna nickel-copper-cobalt project, securing its place in a country at the forefront of the green revolution.

Råna contains Bruvann, a past-producing nickel mine, with 9.15 million tonnes of remaining resources. The mine is located within northern Norway’s Råna mafic-ultramafic intrusion and was operated between 1989 and 2002 when the average nickel price was less than $4 per pound.

For comparison, the daily metal spot price for Nickel at the start of April was more than $7 per pound. Moreover, nickel is a cornerstone metalfor many battery types, with most new battery types making use of the element.

Along with its other elements like cobalt and copper, Råna is clearly a future source of material that can be used for rechargeable batteries.

As part of the deal, GEMC is to acquire a 1% royalty, from royalty holder Chincherinchee Nominee, on net smelter returns. A letter of intent for the deal was announced in February.

In exchange for a 10% interest and 1% net smelter returns, GEMC has agreed to issue 3.3 million shares. It is not responsible for project costs until vendor Scandinavian Resource Holdings incurs more than C$1.5 million in project expenditure.

Either Chincherinchee or Scandinavian Resource have the right to buy half the net smelter returns for C$1.0 million before commercial production begins.

The definitive agreement is subject to receiving all necessary approvals and third-party consents.

Given that there are only “a limited number of quality nickel sulphide projects available worldwide”. Råna appears particularly enticing – a drill-ready class-1 nickel opportunities with low capital expenditure plus considerable “mining potential and exploration upside”.

As a battery minerals investor, Norway is a great entry point for GEMC into Europe. The country has, for example, vowed to ban the sale of fossil fuel-powered cars by 2025 – ahead of Britain’s 2030 target – with around 60% of Norway’s monthly vehicle sales already fully electric.

Chief executive Mitchell Smith said Råna “is located in one of the world’s most opportune nickel districts”.

The project licence area is 25 square kilometres, with Råna located close to facilities currently being developed by environmentally friendly lithium-ion battery company FREYR.

Not only that, but Smith highlighted Råna’s highly advantageous position being both close to, and a possible future supply source for, “an emerging European battery manufacturing hub” located in Norway and the Scandinavian Peninsula as a whole.

This is a fantastic entry to Europe for GEMC, which already has a number of investments elsewhere. These include a 100% interest in the Millennium cobalt project plus two nearby cobalt assets in Queensland, Australia as well as projects in North America.

Among these are an 85% interest in the Lovelock Mine and Treasure Box project in Nevada and 70% ownership of the Werner Lake cobalt project in Ontario, Canada.

In March, GEMC signed a letter of intent to acquire a 50% interest in three battery metals projects from DG Resource Management. Of these, two – Chance Lake and Amiral – are in Quebec, and the other is Monument Peak in Idaho.

According to Smith, the definitive agreement marks a “major milestone” for GEMC and represents “an active step” forward in its journey towards “serving the green energy value chain”.

Author: Anna Farley

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

Global Energy Metals in perfect place for localisation and electrification boom (GEMC)

Global Energy Metals’ (TSXV: GEMC) chief executive recently spelled out the advantages of the company’s strategy at a time when major players are shifting towards electrification and localisation. GEMC, which stands at the intersection of these two trends, is well-positioned to capitalise on both.

In a mid-week investor talk, Smith discussed the very topical subject of “localisation and regional supply”. When the pandemic closed borders and cut off supply chains, it exposed the dangers of increasing interdependence. Countries have opted to respond to the crisis by securing local supplies of essential products.

This was the motivation behind GEMC’s recent property acquisitions in North America, where localisation is currently a big focus. Early this month, GEMC signed a letter of intent to acquire a 50% interest in three battery metals projects from DG Resource Management.

Two of these, Chance Lake and Amiral, are located in Quebec – the former is a nickel-copper-cobalt project and the latter a nickel-copper-PGEs asset. PGEs – or platinum group elements – include platinum, palladium, and other metals with similar properties like high melting points and corrosion resistance.

The final property, Monument Peak in Idaho, is a copper-silver-gold project covering around 1,380 acres and includes two small past-producing copper mines.

These new purchases fit well with GEMC’s 85% interest in the Lovelock Mine and Treasure Box project in Nevada, where it is targeting nickel, cobalt, and copper. Eight targets for diamond drilling have already been identified.

The existing Werner Lake cobalt project in Ontario, Canada, is a similarly complementary property. Werner Lake has an indicated resource estimate of 57.9 thousand tons at 0.51% cobalt and 0.25% copper at a 0.25% cobalt cut-off, giving 653,000 pounds of Contained Cobalt.

In his presentation, Smith enthused that all of these assets have given GEMC, “a strong foothold at a time when both the US and Canada are really committing to securing supply of material and building out infrastructure for electrification”.

Having based its portfolio around the rechargeable battery and electric vehicle (“EV”) market, and with multiple locations in Canada and the US, GEMC is now in a fantastic position to benefit from both localisation and electrification. Indeed, Smith described this as a “megatrend opportunity”.

As countries turn their focus inward, seeking to secure their own internal supplies, establishing a presence in more than one territory has become increasingly important.

For example, GEMC is also focusing on the Millennium copper-cobalt project located in Queensland, Australia. Millennium contains vast cobalt reserves as well as significant copper. Its estimated resource its 3.1 million tonnes containing cobalt at 0.14%, copper at 0.34%, and gold at 0.12 grams per tonne.

The company’s other Queensland endeavours are the Mount Dorothy and Cobalt Ridge projects. These projects have so far retuned outstanding, high-grade intercepts.

GEMC has partnered with Electric Royalties (CVE: ELEC ) on all three Queensland projects, selling a 0.5% gross metal royalty to them for 1.15 million Electric Royalties shares plus $150,000 in cash. Electric Royalties has a call option to buy another 0.5% royalty on net smelter returns from Millennium for a further $500,000 – of which up to 25% can be paid in shares. Following that, it holds a second option to increase its NSR on Millennium by another 1%.

In the investor talk, Smith said the Electric Royalties deal not only gave GEMC “cash and shares in a company that’s growing and building themselves” but also exposure to new commodities through the company’s royalty portfolio.

GEMC is to gain exposure to battery metals that aren’t just in the cobalt, lithium, copper, and nickel space such as tin and manganese and graphite and others. Electric Royalties started trading on the TSX Venture Exchange in June 2020 and has been growing ever since through new royalty acquisitions. Most recently, Electric Royalties acquired its first cash-flowing royalty covering zinc and manganese.

Battery metal availability is key to electrification. In such a fast-growing space, it makes sense to seek exposure to more of these increasingly valuable materials.

On top of all this, in February, Global Energy announced a strategic investment in Norway though the past-producing Rana nickel project, seizing a great opportunity in Europe. Under the Rana deal, GEMC will acquire a 10% interest in a portfolio of four exploration licences from Scandinavian Resource Holdings and a 1% net smelter licences in exchange for 3.3 million GEMC shares.

This is a particularly great country for GEMC to move into, as Norway is poised to ban the sale of fossil fuel-powered cars by as soon as 2025. The country is, as Smith put it, “leading the world in terms of electrification of vehicles”.

The UK is to follow suit with a ban in 2030 and Japan in the mid-2030s. In the US, California intends a halt the sale of passenger cars and trucks that use gasoline in 2035. The EU is also proposing a crackdown in order to hit its legally binding 2050 zero emissions target while China, too, is considering its own ban.

Norway in particular is a great space for GEMC to enter as it is “emerging as a real battery manufacturing hub for Europe”. As Smith added, Rana offers “a future supply to that market”.

GEMC is continuing to move ahead with its ambitions and raise funds. In the investor talk, Smith highlighted that, at the time of speaking, GEMC was undertaking a private placement. He added that the firm was looking to raise a minimum of $500,000 from 2 million units at 25 cents each, with a 35 cent full warrant.

With these new funds and a position at the critical intersection of localisation and electrification, GEMC seems well-set to take advantage of the huge opportunities its space presents.

Author: Anna Farley

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performanc

Global Energy Metals takes million-dollar cobalt upside with Werner Lake sale (GEMC)

Influential battery metals pioneer Global Energy Metals (TSX-V:GEMC) has inked a deal to sell its entire 70% stake in a key Canadian mining resource to ethical cobalt specialists CBLT Inc. (TSXV: CBLT).

GEMC’s sale of its total interest in the Werner Lake project provides the company with immediate cash while retaining useful exploration upside through a stake in CBLT. 

Under the terms of the deal, GEMC receives a $20,000 non-refundable deposit and 5 million CBLT shares worth $250,000 issued at $0.05/share. Global Energy Metals will also receive 3.5 million CBLT warrants, each exercisable at $0.08 per share with a two-year term. The equity stake in CBLT represents 11% of the miner’s share capital. GEMC CEO Mitchell Smith said the move “will strengthen GEMC’s equity portfolio holdings of battery mineral focused peers”. 

GEMC will also get a royalty payment of $500,000 in cash upon Werner Lake reaching commercial production. 

The cobalt resource consists of 102 patented mineral claims in one of Ontario’s key mining districts. Historically the mine has produced 143,386 pounds of cobalt at a 2.2% grade. 

GEMC has previously partnered with ASX-listed Marquee Resources (ASX:MQR) at Werner Lake. Marquee reportedly intersected high-grade cobalt mineralisation from numerous diamond drill holes. 

If CBLT sells or options part of Werner Lake within two years, GEMC will also receive 20% of the gross proceeds. 

Mitchell Smith believes that the global transition to net zero energy — powered by the massive growth of rechargeable batteries — is potentially one of the biggest commercial opportunities of this generation. 

As such the GEMC CEO has been furiously building and maximising shareholders’ exposure to the battery metals supply chain. Sales like this, while retaining strong exposure to mining upside has positioned the company for long-term growth, too. 

It’s likely why Vancouver-based institutional equity researchers Fundamental Research Corp rate the stock a buy, with forecast near-term upside of 63.6% from today’s $0.28 share price.

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,” Smith noted. 

Auto goes electric

As ever more automotive giants spend increasingly huge amounts of capital into moving their fleets to electric, the spotlight is shining ever brighter on battery metals. 

As CNN Business described on the launch of the Audi e-tron: “The great electric car race is just beginning. Thirty-six shoebox sized battery modules, each containing a dozen lithium ion cells are packed into 7ft-long electric battery packs and slung under the floor of each SUV.” 

What powers those shoebox-sized lithium-ion batteries? Critical metals like cobalt. That is Global Energy Metal’s prime focus and its greatest benefit. 

And the stakes? “Failure [for Audi owner Volkswagen] could signal the end for a company with an annual revenue of $265 billion.”

The consequences, too, for governments and policymakers who fail to find solutions to rapid climate change will be dire. So, it’s clear that battery metals represent a key growth area for the trillion-dollar automotive sector, along with a potential salve for renewable energy enthusiasts.

Nevada next

In recent months, GEMC has positioned itself strongly for growth. 

In August 2020, the firm tidied up its corporate structure with a 10-for-1 share consolidation. 

Then, a month later, it raised $659,000 in an oversubscribed private placement to take an 85% stake in Treasure Box and Lovelock. These are two key Nevada cobalt, copper and nickel projects on the doorstep of Tesla’s giant lithium-ion Gigafactory 1.  

New magnetic data results from Lovelock in November 2020 showed the rocks that host known metal deposits extend 2.5km beyond the previously thought zone, with 18 clustered magnetic high anomalies potentially reflecting resources from the surface to 150 metres deep. Eight drill holes have now been proposed for GEMC’s first exploration. 

Author: Mark Sheridan

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

Global Energy Metals in pole position for worldwide energy storage shift (GEMC)

Global Energy Metals (TSXV:GEMC) is the leading vanguard for investors to gain exposure to a ground-breaking shift towards electrification and battery storage, the company highlighted in a recent interview. 

The firm has been positioning for strength throughout the opportunities ahead in recent months. A 10-for-1 share consolidation to clean up its corporate structure completed in August 2020, while a “small but meaningful fully oversubscribed private placement” raised $659,000 in September 2020.

The proceeds were used to acquire an 85% interest in two strategically-important cobalt, copper and nickel projects, Lovelock and Treasure Box in Nevada. 

Speaking to Arne Gulstane, head of company services for the TSX stock exchange, CEO Mitchell Smith laid out the investment case for GEMC today. 

Climate neutrality and the supply exposure to the core minerals that are essential to it are very much key to Global Energy Metals,” he said.“And our assets are in some of the world’s safest jurisdictions. That includes Nevada in the USA, Queensland in Australia, and Ontario in Canada. These are really primed for development.”

This point is key: 60% of the world’s supply of cobalt, for example, is currently produced from the Democratic Republic of Congo, a politically unstable nation whose mining sector has repeatedly been accused of using child labour. Amnesty International is among the NGOs that have highlighted the state of affairs, and cobalt mining giants like China’s Huayou Cobalt have now exited the African nation after years of international pressure. 

Following a recent deal with Electric Royalties, GEMC also has equity stakes in other key battery metal resource companies to complement its main focus. “It really increases our exposure to the EV battery and energy storage markets,” said Smith.“This is a theme we’re going to explore as we broaden our exposure to this growing sector.” 

Near-term catalysts

The political will to protect and expand the US battery metals sector is now turning in GEMC’s favour. 

On 30 September President Trump signed an executive order to spur domestic production of critical battery and rare earth metals. According to the order, 35 minerals are now registered as “essential to the economic and national security of the United States”, have supply chains that are too focused on imports, and also serve “an essential function, the absence of which would have significant consequences for our economy [and] national security.”

This very public prioritization is key to the future of the sector and puts GEMC in prime position, Smith noted, saying: “This really provides new pathways for greater government support for critical mineral mining.”

It’s noteworthy in that there has been no other US administration since the Second World War that’s put forward such an aggressive set of policies aimed at providing financial and other assistance to the mining and processing of so many critical and strategic metals,” he added.

With the weight of the US government now at its back, GEMC’s Nevada expansion is looking like a very important move.

Global changes

As readers will no doubt be aware, the world is undergoing a wholesale shift away from fossil fuels and towards electromobility, whether that’s in electric cars, electric trucks or e-scooters. 

Sales to private citizens make up one portion of the market, but there is a potentially far more significant change underway in commercial freight, supply chain, government municipal projects, delivery and courier services, public transport, and industrial machinery. 

With this in mind, it’s clear that the electrification of the world is only just beginning. Regardless, the impact on companies producing non-renewable fuels for vehicles is already being seen.

British supermajors BP and Royal Dutch Shell are the canaries in the coalmine for the oil industry. Both made painful dividend cuts this summer, in the case of Shell, its first since the end of the Second World War. And BP in particular surprised markets over the summer with a gloomy forecast for its key commodities, writing down the value of its oil assets by £14 billion. Spending on oil and gas production would fall 40% over the next decade, the company said, while renewables investment would rise to a minimum of $5 billion a year. Market analysts called the transformation strategy major, positive, thoughtful and largely unexpected”.

But GEMC and its early investors are the ones who saw this shift coming. 

Supporting this wholesale change is the new development of mass, city-sized energy storage facilities across the globe. Tesla is the most obvious case, with its numerous Gigafactories. But there are far-less visible and customer-facing companies at work. 

For example, LS Power has just brought its 250MW Gateway project online in San Diego, California, with some 67% higher output than the world’ previous biggest battery storage project, Hornsdale Power’s 150MW capacity operation in Australia. 

Ever more and higher-rated plants are in construction now in a bid to provide the infrastructure for this new utility segment. 

That’s why the key metals needed to create these giant battery storage projects are in such high demand. 

As early adopters to the battery metal sector with proven track records we formed this company to provide our investors exposure to what is now becoming a mega-trend,” said Smith.

Author: Mark Sheridan

 

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance

 

 




Global Energy Metals widens the net to maximise battery metals exposure for investors (GEMC)

Global Energy Metals (TSX.V) has widened its scope to maximise its exposure to the rapidly-growing battery metals sector.

Speaking exclusively to MiningMaven, the Canadian explorer and developer’s chief executive Mitchell Smith said that the trend toward green technology is accelerating at a faster pace than ever. And the biggest driver by far is the electric vehicle (“EV”) boom.

Pick any forecast, and it will paint a picture of a not-too-distant future where roads around the world are lined with these fossil-fuel-free automobiles. For example, Bloomberg New Energy Finance expects 500 million EVs to be in use by 2040. Even OPEC foresees a global fleet of roughly 320 million of the vehicles by this point.

But to get to this stage, a lot of money needs to be spent.

The UK’s RhoMotion recently suggested that global investment in the EV supply chain will be well more than USD$1 trillion. Meanwhile, Bloomberg expects automakers to invest some US$300 billion over the next five to ten years on EV development and production.

A major part of this expense will arise from the purchase of the raw materials that are needed to create these EVs. And digging even deeper, the most sought-after part of this will be metals like nickel, cobalt, and copper used to create the electric batteries that power these automobiles.

Currently, there is an over-reliance on unstable, third-world jurisdictions when it comes to sourcing these battery metals.

Take cobalt as an example.

This metal is critical to many EV batteries. However, its supply is often limited and disrupted as a result of a considerable over-reliance on mining in DRC – an African country rife with political instability and human rights violations.

The dire need for reliable sources of battery metals in safe, pro-mining jurisdictions as the EV revolution continues to increase is becoming increasingly apparent.

As Smith put it to us: “Supply chains need to be diversified into jurisdictionally safe parts of the world. Places like Australia, or like North America, or parts of Europe that have materials that can be produced. We cannot over-rely on one area, especially one that isn’t stable.”

Today, the companies and people in power are starting to take action.

Global carmakers from early-stage startups to automobile giants like Volkswagen, Ford, BYD, Toyota, and Tesla are all beginning to lock in supplies of raw materials needed to produce their lithium-ion batteries. Meanwhile, first-world countries are placing more and more strategic importance on controlling and building a shorter, localized supply chain of battery minerals.

Look at the U.S and Canada as examples.

The governments of both countries have placed several minerals deemed essential to the growth of the battery metals as critical and are working together to develop and implement a critical minerals strategy.

At the end of September, President Trump even put into effect an Executive Order requiring the Secretary of the Interior to identify critical minerals and making it policy to reduce US vulnerability around critical mineral supply disruptions.

“A strong America cannot be dependent on imports from foreign adversaries for the critical minerals that are increasingly necessary to maintain our economic and military strength in the 21st century,” he said at the time.

This, Smith tells us, is exactly where Global Energy is positioning itself.

“We are true believers in electrification, and we think that it's one of the biggest investment opportunities of the generation. We want to be here to be a part of that in the biggest way possible, and to be able to maximize that exposure. Our focus is on the supply chain for battery metals like cobalt, nickel, and copper because that is really the foundation upon which this path to electrification and new energy storage is based.”

In the past few months, the firm has taken two major steps to maximise its exposure to battery metals and the need for simple and safe supply chains in first-world jurisdiction.

First, in July, the company announced the sale of a portfolio of royalty interests on its Australian cobalt assets to Electric Royalties in exchange for a stake in the business.

In doing so, it retains exposure to the enormous potential on offer at its Millenium Cobalt Project and two neighbouring exploration-stage cobalt assets in Mt.Isa. However, the firm and its investors also gain exposure to Electric Royalties’ strong and diversified energy mineral asset royalty portfolio.

“Electric Royalties has a much wider, diverse portfolio of assets that we also get added benefit from including lithium, vanadium, manganese, and graphite. These will all benefit from the electrification trend, so I think that having that exposure is really important,” Smith tells us.

A map of Global Energy's portfolio of projects around the world

Second, earlier this week, Global Energy announced that it had established a new wholly-owned U.S subsidiary called U.S Battery Metals Corporation.

This gives the company a strong presence in the country at a time when the sourcing of a localized critical battery metals supply chain has become essential to the future of the EV industry and is on the forefront of national, political, and economic agendas.

Global Energy’s first port of call was to place its Lovelock Mine and Treasure Box projects into this new vehicle. The firm recently increased its interest in these two highly prospective, Nevada-based exploration properties to 85% after work confirmed their prospectivity for nickel, copper, and cobalt.

“This increased stake further establishes our very strong footprint in Nevada, which is one of the world's best jurisdictions in which to do mining. It really gives us a chance to build on historic work, and prospective work we have already one to unlock some value through exploration,” adds Smith.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, does not own a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has not been paid for the production of this piece by the company or companies mentioned above.

MiningMaven.com and MiningMaven Ltd are not responsible for the article's content or accuracy and do not share the views of the author. News and research are not recommendations to deal, and investments may fall in value so that you could lose some or all of your investment. Past performance is not an indicator of future performance