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 metal” for 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

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