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

 

 

 

Global Energy Metals reveals “outstanding” metal recovery rates from Millennium project (GEMC)

Global Energy Metals (TSX.V:GEMC) is primed to take one of its flagship projects into the next stage of development after confirming “exceptional” metal recovery results on Monday.

Using a mineralised sample taken from its Millennium project in Queensland, Australia, the Canadian miner achieved flotation recovery rates of metals to concentrates of 93% cobalt, 93% copper, and 80% gold.  Following this, Cobalt Blue Holdings, the firm that completed the metallurgical testwork– was able to extract 90% of the cobalt, 95% of the copper, and 90% of the gold in the cobalt concentrate through leaching.

As a result of these high rates, Cobalt Blue has recommended that a preliminary economic assessment should be completed on Millennium. This will enable Global Energy to evaluate total project costs and determine whether the asset should be advanced to the pre-feasibility stage.

“The metallurgical results presented here continue to demonstrate the significant value of our wholly-owned Millennium project,” said Global Energy’s president and chief executive Mitchell Smith on Monday. “We are especially pleased with the performance of Cobalt Blue who have established that we can produce a clean, saleable copper-gold flotation concentrate and a separate cobalt concentrate which can be successfully treated using the Cobalt Blue Process for recovering cobalt, copper and gold.”

“These test results are an important next step in accomplishing Global Energy’s strategy to secure the supply of minerals critical to national security and economic growth. We look forward to incorporating these results into future studies to quantify the added value to the project.”

Millennium is strategically located around 20 kilometres from the Cudeco Rocklands mine site and refinery and within an area called Mount Isa, which boasts a booming mining economic and plenty of infrastructure. Global Energy also owns two neighbouring, highly-prospective exploration stage properties in the area called Mount Dorothy and Cobalt Ridge, giving it one of the largest total land positions of its peers in Mt Isa.

In Monday’s update, the firm said the processes used by Cobalt Blue to achieve the strong metallurgical results at Mt Isa could potentially be adapted to treat cobalt-copper-gold sulphides common across both of these assets. In doing this, the organisation would potentially be supported by new initiatives recently announced by the Queensland government to explore for “new economy minerals” like cobalt.

Meanwhile, the firm also highlighted the recent signing of an Australia-United States memorandum of understanding for a critical minerals’ collaboration. This is focused on reducing both nation’s exposure to supply disruptions and maximising the competitiveness of their respective minerals industries.

“This international cooperation is anticipated to result in greater support for the development of critical mineral projects, such as Millennium, and the establishment of a strong diversified mine-to-market supply chain to serve the eMobility, aerospace, defense and lithium-ion battery industries,” said Global Energy.

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 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 strengthens Millennium cobalt project financing with key royalty sale (GEMC)

Global Energy Metals (TSX.V:GEMC) strengthened its financial position on Thursday with news of the sale of royalties over its cobalt projects in Australia.

The firm has entered a letter of intent to sell a 0.5% gross metal royalty on its Millennium and Mount Isa projects in Queensland to Electric Royalties. In exchange, it will receive 1.15 million Electric Royalties shares and receive a C$150,000 cash payment.

Meanwhile, Electric Royalties will also be granted a call option to acquire a 0.5% royalty on net smelter returns from Millennium by paying C$500,000 to Global Energy. This is exercisable at any point over the next two years and shares can be used to cover up to 25% of the payment.

Speaking on Thursday, Global Energy’s president and chief executive Mitchell Smith highlighted that the deal provides his firm with a non-dilutive way of pushing Millennium and the Mount Isa projects forward.

“This commitment by Electric Royalties is a significant endorsement of the Millennium and Mount Isa projects by a mine finance firm focused on minerals core to the new energy economy,” he added. “This royalty sales provides Global Energy Metals with an attractive form of financing and short-term investments equal to our market cap through the spin-out of a small royalty on a portion of our Australian projects.”

Millennium contains a JORC inferred resource of 3.1 million tonnes at 0.14% cobalt, 0.34% copper, and 0.12 grams per tonne gold. The exploration stage asset is found near well-established infrastructure and is open for expansion. Preliminary hydrometallurgical studies have demonstrated the potential for recovering saleable cobalt and copper concentrates.

Cobalt Ridge and Mount Dorothy, known collectively as the Mount Isa projects, expand Global Energy’s Australian cobalt footprint to 2,560 hectares, creating a district-scale exploration and development opportunity.

Elsewhere on Thursday, Electric Royalties chief executive and director Brendan Yurik highlighted that the deal represents its first acquisition of cobalt royalties.

“[We} are extremely encouraged by the potential Millennium has in becoming a source of critical material needed to feed the electric revolution,”  he added.

Thursday’s news comes just a week after Global Energy unveiled its plans for developing its nickel/cobalt projects near Tesla’s Gigafactory in Nevada. The firm hopes to complete an interpretation of work at the Lovelock and Treasure Box assets this year before carrying out 3D modelling and an inaugural drill program, and earning-in to an 85% interest in the assets.

Lovelock is said to have produced 500ts of mineralisation between 1883 and 1890 when it was last in operation.   Global Energy believes exploration work and modern drilling techniques could unlock a large amount of potential value at the site.

Treasure Box, meanwhile, sits adjacent to Lovelock and hosts mine workings from limited copper production, which occurred until early into the 20th century. A historical diamond drill hole at the asset reportedly intersected 1.52% copper over 85 feet, with mineralisation beginning at the surface.

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 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