GEMC raises impressive $1.1 million for well-timed acquisitions (GEMC, GBLEF, 5GE1)

Global Energy Metals Corporation (TSXV:GEMC | OTC:GBLEF | FSE:5GE1) closed the second tranche of its oversubscribed placing on Friday, having now raised an exciting C$1.1 million in total.

The second tranche itself raised $230,000 in gross proceeds and, combined with the first tranche announced May 6, the two raised CAD1.1 million gross.

GEMC had already upsized the placing, after a $550,000 investment from two New York-based institutional investment management firms, at the time lifting the placing size to allow up to $1.0 million of gross proceeds. Now, it has raised a total of $1.1 million.

Offering proceeds will go towards general working capital, as well as to acquiring a 50% interest in projects in the US and Canada. These being the Monument Peak copper-silver-gold project in Idaho, as well as the Chance Lake and Amiral nickel-copper-cobalt-platinum group elements projects in Quebec

Additionally, the company will use the money for its business development initiatives and for exploration drilling activities in its Nevada projects. The firm plans to drill as many as eight holes totalling 1,400 metres as part of the inaugural Lovelock drilling program. Lovelock is a cobalt-nickel-copper project.

GEMC’s focus on battery metals is well thought out and well timed, given the current growth in demand thanks to an expanding electric vehicle (“EV”) market. Countries like the UK and Norway, for example, are planning an outright ban on fossil fuel-powered vehicles.

This is part of a growing electrification trend. The trend is led by the idea that it is simpler to create zero carbon electricity using things like wind, solar, and nuclear power than it is to create entirely new combustion fuels for use in things like car engines.

Moreover, in the US, the Biden administration’s American Jobs Plan dedicates $621 billion to transportation infrastructure – including $174 billion to “win” the EV market. The plan focuses on helping automakers spur domestic US supply chains that are competitive on a global basis. The plan will also support American workers in making EVs and batteries.

Given its projects in the US, GEMC stands to greatly benefit from the plan.

President and chief executive Mitchell Smith said closing the placing has put the company “in a strong position to push forward with aggressive exploration programs”, both in Idaho and Nevada. He called these “two of the most prospective mining jurisdictions in the United States”.

“We look forward to continuing our bold approach to value creation as we pursue high-grade battery metal discoveries while demand for secure supply of these critical raw materials accelerates in the global shift towards a low-carbon economy,” Smith concluded.

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, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

MiningMaven Ltd, the owner of MiningMaven.com, has 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’ future looks brighter than ever after fundraise (GEMC, GBLEF, 5GE1)

With its successful fundraise, Canadian firm Global Energy Metals (TSXV:GEMC | OTC:GBLEF | FSE:5GE1) is in an excellent position to benefit from both project development and encouraging global trends.

The US, as Global Energy Metals (“GEMC”) has pointed out before, is committed to securing material supply and building out electrification infrastructure, which should benefit the company’s North American battery metals projects especially.

One major driver is the Biden administration’s American Jobs Plan, which dedicates $621 billion to transportation infrastructure including $174 billion to “win” the electric vehicle (“EV”) market. The plan centres around enabling automakers to spur globally competitive domestic supply chains while supporting American workers in making EVs and batteries.

GEMC’s chief executive Mitchell Smith said the push to secure a battery supply chain in the US is “very real”, with “trillions of dollars being spent to boost that made in America economy”.  Smith further pointed out that this is “only made possible by securing the raw materials that go into that battery supply chain”.

Smith also highlighted the firm’s growing US footprint, including its Lovelock cobalt-nickel-copper project in Nevada.

GEMC’s recently upsized fundraise will also help to advance its goals in the US. After a $550,000 investment from two institutional investment management firms based in New York, the company amended the terms of its financing, increasing the size to allow gross proceeds of up to $1.0 million.

The first tranche of this deal recently closed, raising $870,000 in gross proceeds, with the second tranche set to close in the next few days.

The strategic investment, alongside investor participation, will help GEMC with various initiatives such as the acceleration of its exploration program at Lovelock. Indeed, the firm plans to drill up to eight holes totaling 1,400 metres as part of its inaugural Lovelock drilling program.

Asked about the use of the additional investment, Smith explained that the funds were to be “earmarked for exploration at Lovelock” as the company seeks “to really fast track exploration on that project, given its strategic location and prime mining jurisdiction.”.

The chief executive highlighted the “historical numbers” previously mined at Lovelock as the driving force behind accelerating the project to “confirm some of those numbers and values”.

Proceeds of the upsized offering will also help with capital and business development initiatives. The money will additionally be used in the acquisition of a 50% interest in copper-silver and copper, nickel, cobalt, platinum group elements (“PGE”) properties located in Idaho, US, and Quebec, Canada.

“Our footprint in the US is growing we’ve added on a project in Idaho, we’ve got the Nevada assets that we’re going to advance and we think that there’s a huge opportunity to continue to build up on that,” said Smith.

Moreover, the company’s projects in Canada will benefit from the supply chain agreement between Canada and the US.

“Canada and the US have a joint collaboration agreement that they’re working on to secure that battery supply chain and battery metals from Canada, given the wealth of raw materials that we have,” Smith said.

He pointed in particular to Canada’s growing automotive sector, as well as the “skill and the labour force” needed for such a supply chain. Ultimately, Smith predicts “a stronger collaboration between the two governments”.

A foothold in Europe

In Europe, too, electrification is gathering steam.

GEMC recently inked a definitive agreement to invest in Norway’s Råna nickel-copper-cobalt project, as announced in April. This was the company’s first foray into Europe.

Smith described the firm’s strategy as one of acquisition, development, and partnership”, and said it would consider future steps in Europe.

He explained that the company was “always evaluating opportunities” worldwide, looking for projects that fit its criteria of being both safe and mining-friendly – with Norway and other Scandinavian countries meeting the mark here.

In particular, Smith previously took note of the “European battery manufacturing hub” emerging in that region. The chief executive commented on the number of players in the space, thanks to Norway’s abundance of green energy from hydroelectric power which allows for green manufacturing.

Smith said he expects further expansion there in the future, thanks to both established players and new manufacturers looking to build “a larger footprint for battery manufacturing in the area”.

Adding to this, Norway is poised to ban the sale of fossil fuel-powered cars in just four years.

This put it at the vanguard of a global trend that will also see the UK will implement its own ban in 2030, and then Japan in the mid-2030s. The EU, too, is considering a crackdown in order to hit its 2050 zero emissions target. Outside of the EU, the US state of California intends a halt the sale of passenger cars and trucks that use gasoline in 2035 while China is expected to implement its own restrictions.

A sustainable future

The battery metals space is on the rise, with the growing electric vehicle market driving much of the demand. With bans on the horizon, this demand can only accelerate.

Electrification is vital to tackling climate change. This is because, while there are clear paths to creating zero-carbon electricity using methods like solar, wind, nuclear and hydropower, this is not yet true for combustion fuels.

For example, while it’s simple enough to charge an electric car using clean energy, it is not so easy to swap out petrol for a zero-carbon alternative, especially on a global scale.

“Right now, there’s a global movement towards a cleaner greener economy and a sustainable future. And I think there’s a recognition across the world that the only way to be able to do that is to be able to electrify and use clean sources of energy to be able to move that agenda forward,” said Smith.

He pointed out that critical” to this electrification revolution are the raw materials, the battery metals like cobalt and lithium, and nickel, that make electrification possible. That includes metals from the Lovelock mine, as well as from the firm’s its interests in Idaho and Nevada.

GEMC also has three cobalt-copper-gold projects in Queensland, Australia: Millennium, Cobalt Ridge, and Mount Dorothy. The company groups the latter two as the Mount Isa projects.

The company has a partnership with Electric Royalties (CVE: ELEC ) on all three Queensland projects, having sold a 0.5% gross metal royalty in exchange for 1.15 million shares in Electric Royalties as well as $150,000 in cash.

Electric Royalties has a call option allowing it to buy another 0.5% royalty on net smelter returns (“NSR”) from Millennium for an additional $500,000 – 25% of which can be paid in shares. There is also a second option to increase Electric Royalty’s NSR on Millennium by another 1%.

This partnership gives GEMC exposure to elements like manganese, tin, and graphite that aren’t already in its portfolio but are still necessary for electrification.

With so many great projects and exposure to an array of essential elements for the green revolution, the company benefits on multiple fronts.

The firm is boosted not just from demand for the elements themselves, or a favourable political landscape, but also by the potential for future success from its projects. As exploration generates results and excitement around the company itself, investors might expect to see all of these factors at play in GEMC’s share price.

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 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