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
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