Last week saw Canadian cobalt developer Global Energy Metals (TSX-V:GEMC) announce that it is planning to build upon its strong UK shareholder base by co-listing in London. The firm has a portfolio of pure-play projects in safe mining regions and plans to address and profit from supply constraints in the cobalt market driven by demand, geopolitical risk and secondary mining.

Global Energy’s decision to list in the UK will give British investors seeking exposure to the forecast electric vehicle boom an opportunity to back a new, unique prospect with a dedicated focus on a critical battery metal. Here, CEO Mitchell Smith tells us how the company plans to use its strong foothold in Australia’s Mt. Isa region, Canada’s Kenora Mining District and in Nevada, America to develop into a major player.

Growing demand

Global Energy Metals has been established to provide investors with exposure to cobalt, an essential battery metal that is expected to benefit from a widely-predicted surge in the use of electric vehicles around the world.

Given that around three-quarters of electric vehicle batteries currently contain cobalt, the market for the metal is expected to double over the next four years alone and quadruple by 2028. To express this another way, 62pc of global cobalt demand is likely to come from battery manufacturers by 2020, up from 51pc in 2016 and 20pc in 2006. 

Despite the strong potential presented by cobalt, Smith says there are still very few companies operating as a pure play on the metal. As it stands, 98pc of the world’s cobalt arises as a by-product of mining for other metals.

This has led supply to take a significant hit in recent years as traditional miners have scaled back production amid harsh market conditions.

By acquiring and developing high-quality primary cobalt assets, Smith believes Global Energy can help to reduce cobalt’s reliance on other metals and support its supply:

‘Miners across the majority of the world have never really gone out and looked for cobalt specifically. It has always been looked at as a by-product of copper and nickel production. We are looking at our portfolio strictly as a collection of pure-play cobalt opportunities. It is rare that a company exploring and developing cobalt-focused projects identify deposit types where the copper or nickel represents the by-credit on a valuation metric. By building a company that has a solid foundation in this key strategic metal we have created a unique investment opportunity for shareholders.’

Global Energy also plans to address the market’s heavy reliance on the Democratic Republic of the Congo (DRC).  Following decades of internal conflict, civil wars, and failing infrastructure, the DRC has emerged as one of the most geopolitically unstable regions in the world. With the country currently housing around 60pc of all cobalt resources, these issues have repeatedly impacted global supply over the years.

Compounding this, the DRC’s problems appear to have now extended into the operational realm. Miners are grappling with a fall in cobalt prices and the introduction of a new mining code in the DRC that raises the percentage of royalties they have to pay to the government. This has called into question where new supply will come from if not from byproduct production in the African copper-belt.

By focusing on projects in established, mining-friendly jurisdictions like Australia and North America, Smith believes Global Energy can reduce the historically high levels of volatility in the cobalt market:

‘The recent supply disruptions in the DRC has illustrated how the whole cobalt production chain can be really shaken if you take away even a small amount of supply and highlights the need for supply diversification.   In Australia, we are located in very safe, politically sound jurisdictions with very skilled workforces in place. Meanwhile, the US government has recently acknowledged its support for cobalt by highlighting it as a strategic critical metal. Establishing operations in these stable areas is key to clearing up the serious volatility in the cobalt market stemming from the DRC’s instability.’

Millennium opportunity

Global Energy’s flagship interest is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. The growth-stage exploration cobalt site is located near established mining, transport, and processing infrastructure and has easy access to a very skilled workforce.

Millennium contains a defined zone of cobalt-copper mineralisation where a 2016 JORC Resource estimate identified 3.14MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits using a 1.0pc copper cut-off. Global believes that it can immediately enhance the economics of the resource by updating the estimate using today’s improved cobalt prices.

What’s more, it is reviewing studies to increase the size of Millennium’s deposit. For example, recent mapping, soil geochemistry and rock sampling identified 1.5km of untested cobalt-copper mineralisation along a potential strike extension from the defined zone.

A map of the Millennium project’s location within the Mt Isa region

Global Energy’s first involvement in Millennium came in 2017 when it agreed to acquire 75pc of the project from a firm called Hammer Metals in exchange for funding $2.5m worth of work commitments. Following a successful first round of work, the business decided to accelerate its involvement in the project in June last year by entering into an agreement for the exclusive right to purchase a 100pc interest in the project.

The company agreed to issue 19.9pc of its share capital to pay for this additional stake and Hammer’s CEO Alexander Hewlett has joined its board to provide operational and technical support. This deal closed in January and is pending Exchange approval in a move that Smith believes to have established Global Energy ‘as a cobalt leader in one of the world’s best mining jurisdictions.’

Global Energy is now preparing for a second phase of drilling on the northern and southern portions of the Millennium deposit to expand and upgrade the current resource. Smith told us he is highly optimistic about the value this work will add:

‘Moving forward, we believe that through expansion drilling we can significantly increase the resource size at Millennium both at strike and depth. This is something we will look to do in the first half of this year as well as carrying out additional assessments on the project to better understand its metrics and economics.’

An image showing the scale of the Millennium project’s zone of mineralisation

As part of the Millennium deal, Global Energy has also acquired two further Mt. Isa properties called Mt. Dorothy and Cobalt Ridge.

The sites, which expand the firm’s Australian land position by nearly twenty times, have yet to be exploited. However, exploration to date has returned high-grade cobalt intercepts at both. To follow this up, Global Energy has already lined up numerous targets for further investigation as well as test work to define a resource.

Although the two sites are at a very early stage, Smith tells us their inclusion takes Global Energy’s Mt. Isa position into another league:

‘Obviously, the Millennium alters the capitalisation of the company because we are issuing shares to Hammer Metals. However, with these two resources turning the acquisition into a district-scale exploration opportunity, we think it will end up being highly accretive for shareholders. We are very excited to see how these sites develop and look forward to updating shareholders.’

Proximity play

Moving away from Australia, last month saw Global Energy agree to acquire an 85pc stake in two Nevada-based cobalt sites called the Lovelock Cobalt Mine and the Treasure Box Project.

Lovelock covers an area of around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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.

Aside from providing Global Energy with permitted, drill-ready locations in a well-established jurisdiction with historically high cobalt grades, the sites are also located just 150km east of Tesla’s Gigafactory. Smith emphasizes that the acquisition was a low-cost entry to an exciting jurisdiction that is in close proximity to the world’s largest battery factory:

‘Some of the grades at these sites are exceptional. Historically, grades were reported as high as 14-15pc cobalt, which is just unheard of. It shows there is a real opportunity in this significant land package covering two past producing mines. Given our proximity to Tesla, this could really provide us with unique access to the growing demand for domestic cobalt supply in the US.’

Lovelock and Treasure Box location map

Global Energy’s final interest is a legacy asset called the Werner Lake Cobalt Mine in Ontario, Canada. This operated as a high-grade source of cobalt in the 1940s and was taken back to mine decision in the late 1990s.

To allow it to focus on Australia and the US, Global Energy has teamed up with Australian miner Marquee Resources to advance the project.  Marquee is in the process of sole-funding a $2.5m exploration and development work programme in exchange for a 70pc interest in the pit.

Last month, Global Energy said Marquee’s work over 2018 had confirmed the extent and continuity of high-grade cobalt mineralisation at Werner. It added that it has also extended the limits of mineralization defined by the current mineral resource model.

Support network

Aside from its broad portfolio of assets in mining friendly jurisdictions, Global Energy has established a partnership with leading battery manufacturing firm Beijing Eastspring Technology Material. The two business jointly invest in and develop cobalt projects. It has also appointed a company called New Tiger Consulting to seek additional investors and material supply partners in Mainland China, Hong Kong, and Taiwan.

Global Energy is also backed by a management team with decades of experience in the niche cobalt and battery metals sectors.

Having held senior roles in the resource sector in the past, Smith has experience in negotiating off-take agreements for cobalt material and building relationships with Chinese battery manufacturer intermediaries. Meanwhile, CFO Luis Hadic has more than a decade of accounting experience in various resources sectors while directors Erin Campbell, Peter Reynolds, Paul Sarjeant and Gaston Reymenants have senior expertise with specialist mining companies.

Smith says he and the board pride themselves on being some of the first people to recognise cobalt’s potential:

‘As a management team have been involved in the cobalt space for over a decade. I think it rare for a group of people to have collectively realised the importance of cobalt being a niche under-exposed metal with serious supply constraints and opportunity within the demand side. I think the market is really starting to wake up to the criticality of cobalt in batteries and the growing electrification of vehicles and we will benefit from being early adopters.’

Global Energy’s belief in cobalt’s prospect is backed up its management team’s considerable ‘skin in the game’, with insiders currently owning 20pc of shares. Institutional investors own a further 10pc.

Meanwhile, Smith tells us the firm has decided to co-list in the UK’s NEX exchange in response to considerable demand among British investors:

‘Over the course of 2017 and 2018 the company has seen great demand to undertake a UK listing and given that we already have a strong UK presence through UK investors participating in previous financings we are excited to commence trading in the country. This listing will ensure that UK investors, both existing and prospective, have the ability to invest in GEMC through a domestic exchange. In conjunction with this listing, we have engaged the services of respected communications providers including Mining Maven to enhance our reach within the British-investing community.’

Global Energy has enlisted Peterhouse Capital to act as lead adviser and manager of the proposed listing process. It expects to provide additional updates on timings with respect to listing in the near future.

Unique opportunity

With a broad portfolio of projects in safe jurisdictions and cash available to progress them, Global Energy is well positioned to make a real difference in a cobalt market suffering from severe supply constraints. Shareholders can expect a steady stream of updates from all of the company’s projects over the coming year. With its pure focus on the cobalt market, Global Energy will provide both its UK-based and globally-situated investors with a unique way of playing the forecast boom in electric vehicles.

Author: Daniel Flynn

Global Energy Metals (TSXV:GEMC | OTC:GBLEF | FSE:5GE1) recently announced major strides forward at its Millennium project in Australia thanks to a new agreement with Metal Bank(ASX: MBK).

The two firms signed a binding term sheet for a six-month exclusive option for Metal Bank to earn-in and joint venture (“JV”) the cobalt-copper-gold project.

Millennium’s inferred 2012 JORC resource is 5.89 million tonnes at 1.08% copper equivalent, from its five granted mining leases. However, as the company noted, there is “significant potential for expansion”.

Mitchell Smith, GEMC’s chief executive, praised the deal in an interview with Mining Maven.

According to Smith, Metal Bank is “very keen to see Millennium advanced and developed in a tight timeframe”, creating a substantially larger project.

A rich history

Millennium is based in Queensland, Australia in the Mount Isa region – only 19km from the Rocklands copper-cobalt project and refining capacity. Rocklands hosts an impressive 55.4 million tonnes of resources grading 0.64% copper, 0.15 grams per tonne of gold, and 290 parts per million cobalt (0.90% copper equivalent).

Not only does the area contain a lucrative nearby project, but Smith noted that Queensland is a “great mining jurisdiction”. He said the Mount Isa region has “an extensive history of mining”with good infrastructure and access to labour. Mount Isa is also “in close proximity to rail and port to some of the biggest end user groups, being in Asia”.

In 2018, Global Energy completed a ten-hole, 1,141m drilling campaign that confirmed historical cobalt mineralisation estimates previously completed by Hammer Metals in 2016.

This programme duplicated historical results and demonstrated continuity between the previously reported high-grade cobalt zones indicating wide zones of cobalt mineralisation near surface and at depth with assay results indicating metal grades exceeding prior expectations. At the same time, it also determined that mineralisation continues to depth, including 28m at 0.35% copper and 0.2% cobalt.

In fact, testing encountered cobalt and copper mineralisation along the entire 1,500m targeted strike length with zones open in all directions.

With that in mind, GEMC and Metal Bank have agreed the next logical steps for Millennium.

A clear plan of action

The deal between the two companies has four stages. The first involves a six-month exclusive option period for Metal Bank to conduct due diligence.

By paying A$10,000, Metal Bank has right of exclusivity from the term sheet date to June 30. This right of exclusivity extends through the option period after the option agreement is signed.

Metal Bank will also undertake an initial exploration programme in that first phase in order to confirm Millennium’s mineralisation potential. This work programme includes geological mapping and reconnaissance drilling for up to four reverse circulation (“RC”) holes.

Phase two will see Metal Bank earn a 51% project interest by issuing A$250,000 of its stock to GEMC and solely funding $1 million in exploration expenditure.

This includes multiple tests across different project areas, including two deep down dip extension test holes and six resource infill holes at Millennium Resource. There will also be fourteen holes drilled at Millennium North and up to four RC holes on the Federal/Corella Trend.

In the third phase, Metal Bank can earn a further 29% interest through the issue of A$350,000 in its own shares and funding A$2 million, giving it an 80% total interest. Work programmes in this phase includes a Millennium Resource upgrade, updated mineral resource estimate, and the start of a feasibility study.

Finally, in phase four, GEMC can elect to require Metal Bank to buy out its final 20% interest in exchange for further shares, to be agreed. Otherwise, the two parties will fund expenditures in proportion to their interests.

Phase four’s work programmes include completing a bankable feasibility study, obtaining development approvals, development, and mining.

Included in the term sheet is a buy-out option at the end of the second phase, letting Metal Bank acquire the 29% for $1.5 million in shares and A$1 million in cash before moving immediately to phase four.

A meeting of minds

Smith highlighted the “added exposure to Metal Bank”,calling it “a growing company”and a “strong opportunity” with a “good portfolio”. With this deal, GEMC’s shareholders can maintain Millennium exposure and gain a strong new partner at the same time.

Asked about the benefits of having Metal Bank on board, Smith highlighted the impressive board and management.

“The people at Metal Bank, first and foremost, are exceptional. They have a very strong track record and we see a strong opportunity to work with them,” Smith said.

For example, Metal Bank executive chair Inés Scotland has spent more than 20 years in the mining industry. She was recently chief executive of listed, $500 million market cap company Ivanhoe Australia.

Scotland’s background includes time as managing director and chief executive of Citadel Resource Group. At the time of Citadel’s 2011 acquisition by Equinox Minerals, it had a $1.3 billion market cap and was developing Saudi Arabia’s Jabal Sayid copper project.

Guy Robinson, executive director at Metal Bank, has more than 30 years of experience as chief financial officer, company secretary, and director. This includes time as chief financial officer/general manager of finance Jardine Lloyd Thompson, Colliers International, and Franklins.

Meanwhile, company secretary and executive director Sue-Ann Higgins has worked in the mining industry for more than 25 years, which includes senior and legal commercial roles at Citadel, as well as ARCO Coal Australia, Oxiana, and WMC Resources.

Smith commented that Metal Bank’s “very strong team”has been “serially successful in the past” and is looking for another success in Millennium. He said GEMC is “definitely very keen to be partnering with them”.

A chance to advance

This agreement is a great opportunity for GEMC, where the core focus has been on projects in North America, specifically in Nevada and—now—Idaho following a recent acquisition in the state.

Now, the firm can see Millennium advanced when it “wasn’t expecting to be able to”, allowing for more widespread project development.

The deal allows GEMC to make the most of the ongoing green revolution, which is causing increased demand for the cobalt and copper contained within Millennium.

Both of these play key roles in electric vehicles (“EVs”). Cobalt is a key component in EV batteries, while copper is important for the motors, batteries, and wiring. In fact, EVs use twice the copper of a traditional internal combustion engine vehicle.

With its Australia project advancing, and other battery metals projects elsewhere, the company is in a better position than ever to capitalise on the electrification movement.

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

Glencore (LSE:GLEN) has confirmed plans to halt production at the world’s largest cobalt mine, potentially wiping out one-fifth of the world’s global supply of the critical battery metal. In a gloomy set of half-year results on Wednesday that saw it reveal a 90pc fall in net income, the major miner said it expects to transition its Mutanda mine in the DRC into temporary care and maintenance by year-end.

Its decision reflects Mutanda’s ‘reduced economic viability’ in the face of rising regulatory costs in the DRC at the hands of a harsh new mining code and a significant fall in cobalt prices. After quadrupling in two years, cobalt prices have sunk to their lowest level since 2016 as producers have flooded the market with new supplies. Indeed, Glencore itself has reported a $350m non-cash loss from cobalt that it has mined but not been able to sell.

As well as 199,000ts of copper, Mutanda produced more than 27,000ts of cobalt last year, making it one of the world’s largest sources of the metal – responsible for around 20pc of global supply.  Like many businesses operating in the sector, Glencore and its investors had hoped to ride the boom in electric vehicles (EVs), many of which are powered by batteries containing significant amounts of cobalt.

The world’s fleet of EVs grew by 54pc to about 3.1m in 2017 and is expected to hit 125m by 2030, according to the IEA. JP Morgan forecasts that EVs will account for 30pc of all global vehicle sales 2025 – this compares to 1pc in 2016. As such, the market for cobalt is expected to double over the next four years alone and quadruple by 2028. To express this another way, 62pc of global cobalt demand is likely to come from battery manufacturers by 2020, up from 51pc in 2016 and 20pc in 2006.

With this in mind, Glencore’s decision to cut supply at a time of low prices has been interpreted by some as a way of placing a floor under the flagging market and turn it around by eradicating its existing surplus. This would not be the first time the business has implemented such a tactic. As Bloomberg reports, the business slashed zinc production in late 2015 when prices were plunging in a bid to manufacture supply shortages. The metal responded with a 60pc price surge in 2016.

As such, Glencore’s move has breathed life into many cobalt businesses, with shares in major Chinese cobalt companies rallying on Wednesday. Mitchell Smith, president of Global Energy Metals (TSX-V:GEMC), a firm developing a diversified portfolio of cobalt assets in stable jurisdictions, also noted the significance of Glencore’s decision to shutter Mutanda.

‘The shuttering of Glencore’s Mutanda Mine in the DRC in combination with the limited production numbers from the business’s Kamoto Copper Company drastically changes the supply outlook for cobalt in light of increased demand pressure from the automotive industry’s quest to go electric,’ he said. ‘Cobalt should definitely be on investor’s radar as mining companies in the Central African Copper-Cobalt belt begin to retaliate against the new mining code and push back to relax the significant taxation rates. It should be interesting to see how the price of cobalt reacts and where investors turn to get exposure to the critical mineral.’

Wednesday’s boost to the cobalt market comes around a month after British scientists warned that if EVs replace the UK’s 31.5m cars by 2050, as per government plans, it will require twice the current annual global cobalt supply alone. In a letter to the country’s Committee on Climate Change, the team of scientists said replacing the vehicles will require 207,900ts of cobalt as well as 264,600ts of lithium carbonate and 2,362,500s of copper.

Many believe that cobalt’s bear-run could soon come to an end.  For example, a recent report from FocusEconomics suggests that cobalt prices will hit $40,000 by mid-2020, before adding another $10,000 in 2021. As International Banker highlights, this bullish sentiment is being put down to a boost in global EV sales volumes.

Likewise, Roskill Information Services has said: ‘With demand across most major end-use applications set to increase, and with demand from the battery sector expected to enjoy double-digit growth over the coming decade, the market is gearing itself up for a sustained period of unprecedented consumption growth.’

Should EV uptake and cobalt demand continue to increase and supply constraints become more apparent, then it will be of significant benefit to businesses like Global Energy with exposure to the metal beyond the DRC.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

Canadian cobalt developer Global Energy Metals (TSX:GEMC) announced that it has made its first option payment towards acquiring two cobalt projects near Tesla’s Gigafactory in Nevada on Tuesday.

The business, which announced plans to co-list in London in February, has issued 384,627 of its shares to Nevada Sunrise and paid $20,000 to the underlying vendor. This forms the first part of its agreement with Nevada Sunrise to acquire an 85pc interest in the Lovelock cobalt mine, under-explored for its high-grade cobalt-nickel-copper potential, and the adjacent Treasure Box project. 

Lovelock covers an area of around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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.

The properties are located in Churchill County, around 150km east of the Tesla Gigafactory in Sparks, Nevada. Speaking to MiningMaven last month, Global Energy’s chief executive Mitchell Smith said the acquisition represents a low-cost entry to an exciting jurisdiction that is in close proximity to the world’s largest battery factory:

‘Some of the grades at these sites are exceptional. Historically, grades were reported as high as 14-15pc cobalt, which is just unheard of. It shows there is a real opportunity in this significant land package covering two past producing mines. Given our proximity to Tesla, this could really provide us with unique access to the growing demand for domestic cobalt supply in the US.’ 

In Tuesday’s update, Global Energy added that it is also reviewing exploration plans for both Lovelock and Treasure Box. It said this programme will assist it with an ongoing, extensive review and reinterpretation of historic data at both sites.

“There has been a tremendous amount of attention placed on the US for it to stop being merely a bystander in the global battery arms race and start developing more domestic supplies of battery metals such as cobalt, nickel and copper to supply its homegrown battery factories, including Nevada-based Gigafactory 1,’ said Smith. ‘The Lovelock and Treasure Box projects are prime examples of US based battery metal projects that are very prospective and strategically located in close proximity to a domestic end-user with a large appetite for the critical materials used in EV and energy storage technology.’

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation.  Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. 

Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further. 

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge.  These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. It joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset. 

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 (TSX-V:GEMC) continued its US push on Thursday with the news that it has bolstered its position at the cobalt-prospective Lovelock property near Tesla’s Gigafactory in Nevada. The Canadian cobalt developer, which announced plans to co-list in London earlier this year, has staked 11 new claims adjoining its 70 existing project claims at Lovelock. The new applications sit to the north of the historic mineshaft cover c.75 hectares, increasing Lovelock’s total size to 642 hectares within 81 mineral claims.

Global Energy entered an option to acquire an 85pc interest in Lovelock, alongside an additional nearby asset called Treasure Box, in January this year. The two sites are based around 150km east of Tesla’s major battery factory in Sparks.

Lovelock is said to have produced 500ts of cobalt and nickel 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 1.52pc copper over 85ft, with mineralisation beginning at the surface.

Last month saw Global Energy reveal that fieldwork and sample results demonstrated the potential to identify high-grade cobalt, nickel and copper mineralisation over broader areas than initially believed at the two sites. The business is currently compiling historical data and formulating plans for exploration work to advance the battery minerals projects. On Thursday, Global Energy’s chief executive Mitchell Smith said the firm wanted to ensure its land position covered additional prospective areas contiguous to current holdings as it gears up for this exploration work.

‘We are especially excited to have strengthened this land position after recent sampling from the newly staked area extended the potential for additional cobalt, nickel and copper mineralisation around the historically producing mine,’ he added.

The Lovelock expansion follows a busy period for Global Energy in Nevada. In May, the company secured the right to use a major new hydrometallurgical process that it expects to accelerate the development of Lovelock and Treasure Box. The business amended the terms of a non-binding MoU with Canada Cobalt Works to secure a binding agreement for the right to use the company’s Re-2OX technology at its sites for one year.

Re-2OX is a proprietary and environmentally green hydrometallurgical process that recovers cobalt, precious metals, and base metals without using a traditional smelter. Canada Cobalt has said that the operation can create battery-grade cobalt sulphate, adding that nickel-manganese-cobalt battery-grade formulations are also in the pipeline.

Global Energy expects Re-2OX to complement its more extensive exploration and drilling program at Lovelock and Treasure Box that will allow for a reinterpretation of historical data. The business believes this will give it a better understanding of its ability to unlock their cobalt, nickel and copper potential.

The firm will pay Canada Cobalt Works $50,000 in cash and issue it with $150,000 worth of its shares to use the technology. The shares will each be priced at $0.075 and come with one 36-month warrant exercisable at $0.10.

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November. Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. Its joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

Canadian cobalt developer Global Energy Metals (TSX-V:GEMC) revealed that it has increased the size of its recently-announced $500,000 private fundraise by $250,000 on Wednesday in response to high demand. The firm, which is raising the money to support a phase one exploration programme at its two projects near Tesla’s Gigafactory in Nevada, said it will now issue 15m units rather than 10m to raise $750,000

Each unit distributed in the non-brokered, private placement will comprise one $0.05 share and one three-year warrant exercisable at $0.10. Upon first announcing the raise last week, Global Energy said it had also approved the settlement of up to $181,500 of debt by issuing shares at $0.05 each to certain creditors.

The company, which announced plans to co-list in London earlier this year, will use its placing proceeds to advance its Lovelock and Treasure Box projects ‘immediately’. The two properties are located in Churchill County, around 150km east of the Tesla Gigafactory in Sparks, Nevada.  Lovelock covers around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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, is 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 1.52pc copper over 85ft, with mineralisation beginning at surface.

Nevada progress

Last month, Global Energy announced that it had made its first option payment towards acquiring an 85pc stake in both Lovelock and Treasure Box. It issued 384,627 of its shares to the projects’ current owner Nevada Sunrise and paid $20,000 to the underlying vendor.

Speaking to MiningMaven in February, Global Energy’s chief executive Mitchell Smith said the acquisition gives the business a low-cost entry to an exciting jurisdiction close to the world’s largest battery factory:

‘Some of the grades at these sites are exceptional. Historically, grades were reported as high as 14-15pc cobalt, which is just unheard of. It shows there is a real opportunity in this significant land package covering two past producing mines. Given our proximity to Tesla, this could really provide us with unique access to the growing demand for domestic cobalt supply in the US.’

In its March update, Global Energy also said it is reviewing exploration plans for Lovelock and Treasure Box. It said its first-stage exploration programme would assist it with an ongoing, extensive review and reinterpretation of historical data at both sites.

‘There has been a tremendous amount of attention placed on the US for it to stop being merely a bystander in the global battery arms race and start developing more domestic supplies of battery metals such as cobalt, nickel and copper to supply its homegrown battery factories, including Nevada-based Gigafactory 1,’ said Smith. ‘The Lovelock and Treasure Box projects are prime examples of US-based battery metal projects that are very prospective and strategically located in close proximity to a domestic end-user with a large appetite for the critical materials used in EV and energy storage technology.’

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation.  Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits.

Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge.  These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. It joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

This week saw Canadian cobalt developer Global Energy Metals (TSX-V:GEMC) announce that initial results for its environmentally friendly metal recovery process at its assets in Nevada have exceeded expectations.

As announced last week, the firm has signed a deal that will see cobalt, nickel, and copper-bearing mineralised material from its Lovelock and Treasure Box sites undergo a process called Re-2OX. Owned by Canada Cobalt Works, Re-2OX is a proprietary and environmentally green hydrometallurgical process that recovers cobalt, precious metals, and base metals without using a traditional smelter.  Canada Cobalt has said that the operation can create battery-grade cobalt sulphate, adding that nickel-manganese-cobalt battery-grade formulations are also in the pipeline.

Global Energy believes the deal will allow it to confirm efficient battery metal extraction at Lovelock and Treasure Box, and create a potential battery-grade test product.  This will form part of a broader exploration work program at the sites beginning this month that is expected to allow for the reinterpretation of historical data.  The company hopes this work will provide it with a better understanding of its ability to unlock the cobalt, nickel and copper potential of its Nevada acreage.

On Thursday, Global Energy said that – alongside Canada Cobalt – it has already begun on-site work related to Re-2OX at Lovelock and Treasure Box. The business said initial fieldwork is demonstrating the potential to identify high-grade cobalt, nickel, and copper mineralisation over broader areas than original believed at both sites. More details on its planned reconnaissance programme will be provided shortly. Elsewhere, the company said it has terminated the 7.5pc financing announced as part of the Canada Cobalt deal due to Policy 5.3 for Tier-2 Venture Issuers under Section 7.1.

Under the terms of this month’s deal, Canada Cobalt will supervise the reconnaissance programme, protecting intellectual property as results flow to Global Energy.  The business will also be paid a $200,000 upfront first-stage fee for the use of Re-2OX, exclusive of sampling and lab costs that will be funded by Global Energy to a maximum of $100,000.  The two organisations will also look at broadening their relationship in the future.

Lovelock and Treasure Box are based around 150km east of Tesla’s major battery factory in Sparks. Lovelock covers around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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, is 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 1.52pc copper over 85ft, with mineralisation beginning at the surface.

Earlier this month, Global Energy revealed that it had paid a bond that would allow it to begin its staged exploration programme in Nevada. This came just days after the business raised $813,500 in an oversubscribed placing at $0.05 a share to support the funding of the programme.

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November. Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. Its joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or

financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

Wednesday saw Global Energy Metals (TSXV:GEMC) reveal plans to investigate the cobalt, copper, and gold recovery potential of its Millennium project in Queensland, Australia. The Canadian cobalt business, which announced plans to co-list in London earlier this year, has entered into a memorandum of understanding (MoU) with its Australian peer Cobalt Blue Holdings.

Cobalt Blue has been developing minerals processing technology for the extraction and recovery of cobalt and elemental sulphur from cobalt-pyrite feedstocks. The process avoids explicitly the simultaneous production of sulphuric acid, which usually occurs when roasting pyrite, or leaching pyrite through pressure oxidation. Its technology was successfully shown to be technically and economically viable last year following the completion of a pre-feasibility study for the Thackaringa deposits near Broken Hill. Together, Cobalt Blue and Global Energy plan to prepare new cobalt-pyrite samples from Millenium and test the applicability of the former’s process to the concentrates.

Mitchell Smith, CEO and director at Global Energy– which recently revealed its outright acquisition of Millennium – said he is confident that the program can demonstrate a viable way of taking the project forward. Indeed, historical studies have shown that cobalt and copper concentrates can be floated from samples of drill core at the project. What’s more, Cobalt Blue has already begun to apply its technology to tailings from Cuedco’s Rocklands project, which is based just 20km from Millennium.

‘It is invaluable to conduct metallurgical testwork on this resource at this stage in its development and further de-risk the project while looking at various processing options for the company as it continues to grow the existing resource and delineate new targets at Millennium,’added Smith. ‘Given the encouraging results of previous metallurgical tests with high recovery rates for copper, cobalt and gold we are confident that the results from this program can demonstrate a potentially viable option for the project.’

Specifically, the two businesses have proposed an initial review of both historical testwork to produce concentrates and cobalt-pyrite quantity, grade, mineralogy and other physical characteristics at Millennium. They then plan to create cobaltpyrite concentrate samples, conduct laboratory-scale ‘proof-of-concept’ testwork, and prepare a short-form report summarising their findings.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 (TSX-V:GEMC) has said it is ‘more confident than ever’ in its Lovelock cobalt mine as it continues to complete its first round of exploration work at the asset.

The firm is currently focused on defining structural controls in Lovelock’s known battery metal-rich areas and connecting mineralised zones into broader targets ahead of an inaugural drilling programme in Q4 2019. This will enable it to reinterpret historic data at the project, which is located near Tesla’s Gigafactory in Nevada, and provide a better understand of its cobalt, nickel, and copper potential.

In an update on Thursday, the business said that all of its work programmes for the project are progressing on schedule. Notably, a bulk sample taken by its partner Canada Cobalt Works has now undergone initial metallurgical analysis. This has resulted in head assay results of 0.2pc cobalt, 0.19pc nickel, and 2.84pc copper from the waste rock in the historic dumps in front of Lovelock’s opening.

Canada Cobalt Works has sent a sample for mineralogy testing and results will be used to understand better the minerals that are hosting the metals. All this information will assist with Canada Cobalt Works’ Re-2ox process, which can create a potential battery-grade test product from cobalt-nickel-copper-bearing mineralised material.

Elsewhere, Global Energy provided investors with an update on its underground prospecting, mapping, and sampling programme at Lovelock, which it launched at the end of June. The firm said that initial results from the work, which will assist in creating a 3D geological model of the property, have been positive.

‘Particular attention was paid to the main fault of the North Adit however additional underground workings have been discovered, adding to the extensive underground development,’it added. ‘Interestingly, the South Adit appears to be on the same structural zone as the main fault at the Lovelock Mine and the workings follow two subparallel fault systems with some anomalous nickel, cobalt and is copper mineralization. The company believes that the geochemical results are promising, and the structural observations from underground will be valuable when integrated with future survey results.

Based on observations from the work, recommendations for follow-up efforts include mapping and sampling surrounding surface rocks and combining collective findings with geophysical data to determine drill targets.

‘Management is more confident than ever that the Lovelock Mine is a superb value creation opportunity for shareholders,’added Global Energy.

Lovelock is said to have produced 500ts of cobalt and nickel 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.

The business entered an option to acquire an 85pc stake in the asset in January alongside another site called Treasure Box. This 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 1.52pc copper over 85ft, with mineralisation beginning at the surface.

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. Global Energy recently revealed plans to take the project forward alongside Australian peer Cobalt Blue Holdings.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 (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 ResourceHoldings 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

Canadian cobalt developer Global Energy Metals (TSX.V:GEMC) issued a corporate update on Wednesday that saw it highlight the rise of electric vehicles (EVs) as ‘a once in a generation investment opportunity’.

The business, which has built a portfolio of cobalt projects in stable jurisdictions, said the transportation and energy storage industries are set to undergo a ‘profound transformation’ over the coming decades. An ongoing shift from fossil-fuelled to electric-powered vehicles is being accelerated by considerable amounts of investment from businesses and consumers alike. According to Global Energy, cobalt is critical to the continuation of this trend, with demand expected to increase substantially due to its heavy use in lithium-ion batteries.

However, the firm does not believe that supply will be able to keep up with this demand. This is because much of the world’s cobalt is sourced from the DRC- a nation known for its conflict, artisanal mining, and human rights violations. Likewise, cobalt is often mined as a byproduct, meaning supply is very much tied to conditions in the market for other metals such as nickel and copper.

As such, Global Energy’s president and CEO Mitchell Smith said the raw materials and companies powering the shift towards the electrification of vehicles present ‘a once in a generation investment opportunity’, adding:

‘Lithium-ion batteries are at the heart of the current and future energy transition. Batteries that are powered by cobalt are critical to the future of the eMobility revolution. To get exposure to the battery and energy storage opportunity, maybe the biggest investment growth opportunity there is at the moment, one needs to look at the companies securing the metals critical to the space. Global Energy offers that exposure at a basement level entry cost.’

Global Energy also provided a recap of its operations over the last six months. The period notably saw the firm take 100pc ownership of its flagship Millennium cobalt project in the Mount Isa region of Queensland, Australia. As part of the deal, the firm also took on two exploration assets called Mt. Dorothy and Cobalt Ridge, increasing its land position in Queensland considerably.

Following the deal, which was completed with ASX-listed business Hammer Metals, Global Energy filed a technical report for Millennium highlights its upside opportunity and resource expansion potential. It also formed a partnership with industry peer Cobalt Blue Holdings to investigate the site’s cobalt, copper, and gold recovery potential in full. The results of this work are pending.

Elsewhere, Global Energy has also taken significant steps forward at its Nevada-based cobalt, nickel, and copper properties Lovelock and Treasure Box. In early summer, the firm began an exploration program including airborne surveying, digital modelling, underground sampling and mapping, and fieldwork at the assets – which are located near Tesla’s Gigafactory.

It also acquired the right to use technology owned by TSX-listed Canada Cobalt Works called RE-20X at the properties. This skips the normal smelting process to provide high recovery rates for cobalt, nickel, and copper to ultimately create battery-grade cobalt sulphate.

Finally, the six-month period saw Global Energy attend several key industry events around the world in a bid to spread its message. These included the 2019 China Mining Summit and CRU Ryan’s Ferroalloys Conference.

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

MiningMaven Ltd, has been paid for the production of this piece by the company or companies mentioned above.

MiningMaven Ltd is not responsible for its content or accuracy and does 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’ (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 Holdingsand 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(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-1share consolidationto 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 includesNevada 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 Cobalthave 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 Trumpsigned 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 downthe 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 analystscalled 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

On Tuesday, Global Energy Metals (TSXV:GEMC) announced it has initiated fieldwork at the Lovelock Cobalt Mine In Nevada. The firm has its sights on identifying high-grade mineralized zones of cobalt, nickel and copper at the project located just 150km east of Tesla’s battery factory in Sparks. Global Energy will first focus on channel sampling and geological mapping of the underground workings to identify future drilling targets and create a 3D geological model of the area.

The Canadian cobalt developer also reports it has upped its number of new claims adjacent to Lovelock, adding a further 7 to the 11 staked two weeks ago. The new claims are located to the east of the mine and will expand the Lovelock Cobalt mine property to 678 hectares across a total of 88 claims. Some of these claims are contiguous to both the Lovelock Cobalt mine project and the historic nickel mine located in Cottonwood Canyon. Historic mining at the nickel mine provided a 15 tons sample which proved to contain 12pc nickel and 7pc Cobalt.

The Lovelock mine is believed to have produced 500 tons of cobalt and nickel mineralisation in the 1880s 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.

Global Energy’s initial work program will focused on defining structural controls in the known battery metal-rich areas in preparation for an inaugural drilling program.

Adjacent to Lovelock is the firm’s Treasure Box property which contains mine workings from a previous period of limited copper production.  In January, Global Energy entered into an option agreement to acquire an 85pc interest in both the Lovelock and Treasure Box assets.

The company also owns a 70pc stake in the Werner Lake Cobalt Mine in Ontario, and has entered into an agreement to acquire 100% of the Millennium Cobalt Project and two neighbouring exploration-stage cobalt assets called Mt. Dorothy and Cobalt Ridge in Mt. Isa, Australia. Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length and a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. 

Author: Stuart Langelaan

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

Canadian cobalt developer Global Energy Metals (TSX-V:GEMC) revealed that it has made a payment that will allow it to begin exploration work at its two projects near Tesla’s Gigafactory in Nevada on Thursday. The firm, which has announced plans to co-list in London, said it made a payment to the Bureau of Land Management for the required reclamation bond fee to begin drilling at the sites, which are called Lovelock and Treasure Box.

The properties are located in Churchill County, around 150km east of Tesla’s major battery factory in Sparks. Lovelock covers around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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, is 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 1.52pc copper over 85ft, with mineralisation beginning at surface.

Global Energy’s chief executive Mitchell Smith said completing the bond payment would enable the business to move forward with a staged exploration programme at Lovelock. He added that this will allow for further definition of the character, size, and potential of the nickel-cobalt-copper system at the asset.

‘We are excited about this initial phase of exploration and are very optimistic that this strategically located asset will significantly further the growth of our company,’ said Smith.

The company said its exploration program will be informed by ground induced polarisation surveys that defined areas of anomalous subsurface chargeability. This work has generated a number of drill-ready targets. The business is now reviewing work program options and anticipated announcing details of the first-phase exploration in the ‘near future’.

Earlier this month, Global Energy raised $813,500 in an oversubscribed placing at $0.05 a share to support the funding of the programme. Meanwhile, it announced in March that it had made its first option payment towards acquiring an 85pc stake in both sites. To do this, it issued 384,627 of its shares to the projects’ current owner Nevada Sunrise and paid $20,000 to the underlying vendor.

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November. Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation.  Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge.  These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. It joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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(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

Toronto-listed cobalt developer Global Energy Metals (TSXC:GEMC) has announced numerous encouraging intersections from the latest round of drilling at its 70pc-owned Werner Lake project in Ontario, Canada. Five new metallurgical drill holes have been completed by Australian miner Marquee Resources as part of its $2.5m commitment to advance Werner Lake and earn-in to 70pc of the project.

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

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 CBLTInc. (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

Cobalt developer Global Energy Metals (TSXV:GEMC) has revealed plans to pursue a dual-listing in London. The Toronto-listed business said it expects the listing to support its large existing UK shareholder base and enhance its market exposure by providing access to British investors on a domestic exchange.

In an update on Thursday, Global Energy said it has been discussing a dual-listing of its securities on a ‘recognised investment exchange in London’ for many months now. It has hired Peterhouse Capital to act as it lead adviser and manager throughout the process.

Global Energy’s chief executive and director Mitchell Smith said the timing for a UK co-listing is currently ‘ideal’ because it will complement the recent progress made by the company across its portfolio.

‘A UK co-listing will allow European investors to participate in the increased demand for battery minerals brought on by the aggressive growth and continued global adoption of electric vehicles that our cobalt projects in safe, stable, top-tier mining jurisdictions offer,’ Smith added.

As Smith highlights, the last few months have seen Global Energy take significant steps forward at several of its critical assets. Critically, last November saw the business execute final agreements to take a 100pc interest in the Millennium Project, located in the world-renowned Mt. Isa region of Queensland, Australia.

The growth-stage site is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It contains a defined zone of mineralisation where a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of this deposit.

As part of the Millennium deal, Global Energy has also acquired two additional, unexploited Mt.Isa discovery sites called Mt. Dorothy and Cobalt Ridge. It has lined up numerous targets at the projects for investigation and test work to define a resource.

Beyond Millennium, last month saw Global Energy secure an option to take an 85pc position in two highly prospective cobalt projects in Nevada. The Lovelock cobalt mine and Treasure Box project in Churchill County are based just c.150km east of Tesla’s Gigafactory. Finally, the business owns 70pc of the Werner Lake cobalt mine in Ontario Canada where partner Marquee Resources is currently completing an exploration campaign.

Elsewhere on Thursday, Global Energy announced the resignation of its VP projects Paul Sarjeant, who leaves to pursue a leadership position within the resource sector. He will remain a member of Global Energy’s board.

‘I would like to take this opportunity to thank Paul for his hard work and commitment having played a critical role in the building and growing of Global Energy Metals into what it is today,’ said Smith. ‘On behalf of the Board and the Management of GEMC I would like to wish Paul all the very best in his new role and appreciate his continued support of our company as director and a qualified person.’

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 (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 OPECforesees a global fleet of roughly 320 million of the vehicles by this point.

But to get to this stage, a lotof 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 Energyis 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 Energyannounced 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’sfirst 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

Alongside its prospective assets in Nevada and Ontario, Global Energy Metals’ (TSX-V:GEMC) primary focus is the Millennium copper-cobalt project in the Mount Isa region of Queensland, Australia.

The exploration-stage property, which remains open for expansion, contains vast reserves of cobalt as well as significant quantities of copper.

These two metals are vital components in the production of electric batteries, and are both expected to enjoy an explosion in demand thanks to forecast rise in the use of electric vehicles (EVs) over coming years.

With cobalt nearing a supply deficit due to a widespread move away from the DRC, responsible for more than 60pc of the metal’s global production, projects in stable areas like Millennium have never been more important.

In the report below, alongside Global Energy’s president and chief executive Mitchell Smith, we detail the firm’s plans for Millennium and, critically, why funding at the project level is essential to the future electrification of vehicles.

Please click here to download and read the report in full.

The Northern Zone of the Millennium Project (Source: Global Energy Metals)

Author: Daniel Flynn

• The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
• Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.
• Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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.

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

Cobalt explorer Global Energy Metals (TSX-V:GEMC) further advanced its Nevada-based projects on Wednesday by revealing airborne geophysical and topographical surveys over potential areas of mineralisation.  The firm will use uncrewed aerial vehicles to conduct a UAV-Magnetometer Survey and Orthophoto/Digital Surface Modelling on its Lovelock asset, which based c.150km east of Tesla’s Gigafactory in Sparks.

The surveys are expected to begin next week will cover high priority targets at the asset, which is a past-producing mine with high nickel, copper, and cobalt grades. Work will be completed by MWH Geo-Surveys International, an industry-leader with surveying experience all around the world. The data collected will then be used to inform ongoing fieldwork that is becoming carried out for the planning of a drilling programme later this year.

Global Energy’s chief executive and director Mitchell Smith said: ‘We look forward to conducting these airborne geophysical and topographical surveys with MWH, industry pioneers in drone technology. The robust preliminary results of the initial geological work completed this summer are positive indicators of the potential of the nickel, copper, cobalt project. Moreover, large portions of the mineralized area are still being evaluated by the Company leaving the door open to well-defined drill targets for our Fall Program.’

Wednesday’s news comes just days after Global Energy said it was ‘more confident than ever’ in Lovelock as a result of promising early results in its first round of exploration work at the asset. The firm is currently focused on defining structural controls in Lovelock’s known battery metal-rich areas and connecting mineralised zones into broader targets.

The business said that all of its work programmes for the project are progressing on schedule. Notably, a bulk sample taken by its partner Canada Cobalt Works has now undergone initial metallurgical analysis. This has resulted in head assay results of 0.2pc cobalt, 0.19pc nickel, and 2.84pc copper from the waste rock in the historic dumps in front of Lovelock’s opening.

Elsewhere, Global Energy provided investors with an update on its underground prospecting, mapping, and sampling programme at Lovelock, which it launched at the end of June. The firm said that initial results from the work, which will assist in creating a 3D geological model of the property, have been positive.

Lovelock is said to have produced 500ts of cobalt and nickel 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.

The company entered an option to acquire an 85pc stake in the asset in January alongside another site called Treasure Box. This 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 1.52pc copper over 85ft, with mineralisation beginning at the surface.

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. Global Energy recently revealed plans to take the project forward alongside Australian peer Cobalt Blue Holdings.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out the second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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 (TSX-V:GEMC) has unveiled plans to develop 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.

Work on the sites, which are based around 150 kilometres east of Tesla’s major battery factory in Sparks, follows an initial exploration at Lovelock last year. According to Global Energy’s president and chief executive Mitchell Smith, this confirmed the prospective potential of the overall land package and “indicated considerable promise”.

“Given the scale and prospective nature of this battery minerals discovery, unlocking value from Lovelock and Treasure Box will now form as the primary focus of the company’s 2020 exploration plan,”  he added.

Global Energy’s work will focus on an area central to Lovelock, with this area of emphasis set for expansion if initial assay results are encouraging.

The company said that advancing and earning an 85% interest in the Nevada projects is key to its ultimate goal of developing a domestic supply of battery metals with a particular focus on cobalt.

The global cobalt supply has become an area of serious concern because of its current over-reliance on the Democratic Republic of the Congo, where instability and human rights issues are rife. Firms are increasingly pulling out of or eschewing the country, even though alternative sources of the metal are currently limited. Against this backdrop, cobalt demand is expected to soar alongside the rise of electric vehicles.

This creates an ideal dynamic for Global Energy, which is establishing a portfolio of cobalt projects in stable jurisdictions like the US, Canada, and Australia. Alongside its Nevada assets, the organisation owns 100% of the Millennium cobalt project and two neighbouring discovery stage exploration-stage cobalt assets in the established Mt. Isa region of Australia.

Thanks to the unique positioning of its cobalt projects in stable jurisdictions, Global Energy looks set to enjoy a healthy combination of strong demand for its metals and rising prices due to the wider supply/demand dynamic.

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

Toronto-listed Global Energy Metals (TSXC:GEMC) has reached an agreement to acquire two cobalt projects based just c.150km east of Tesla’s Gigafactory in Nevada. The firm now has the option to take an 85pc position in the highly prospective Lovelock cobalt mine and Treasure Box project in Churchill County. The transaction with local firm Nevada Sunrise is now subject to the acceptance of the TSX Venture Exchange.

The final terms of the deal have changed since the signing of a letter of intent back in September. For example, Global Energy was originally due to take an 80pc position in the projects rather than 85pc. Furthermore, required exploration payments have been cut considerably from $2.5m to $1m. Global Energy must meet this obligation within three years of its option being exercised.

To acquire its stakes, Global Energy must issue $200,000 worth of its shares to Nevada Sunrise. These will be priced at the greater of $0.15 or the volume weighted average of the closing price of Global Energy’s shares for the 20 trading days immediately before executing the option. Global Energy will also have to make a $75,000 cash payment and several additional share transfers to Nevada at predetermined dates over the next two years.

The two projects produced a limited amount of high-grade cobalt, nickel and copper in the 1880s. According to Global Energy, the average grades of a 200-tonne shipment in 1886 came in at an impressive 14pc cobalt and 12pc nickel. However, the projects and their surrounding areas are yet to be thoroughly explored using modern drilling techniques.

Churchill County hosts excellent infrastructure and several copper-gold projects. It also shows strong enrichment in cobalt, nickel and copper. Global Energy said this makes the region very attractive for further exploration and expansion through other attractive growth opportunities. The business has already identified eight diamond drill targets and has carried out geological mapping, chip and channel sampling, and geophysics.

Lovelock and Treasure Box location map

Speaking to Mining Maven, Global Energy’s chief executive said he was ‘happy to report’ that the firm has secured the definitive agreement.

‘I am also excited to reveal that we were able to secure better terms and a slightly larger stake than originally drafted in our letter of intent,’ he added. ‘The acquisition of the Nevada cobalt projects is another significant milestone for GEMC. This transaction exposes the Company and its shareholders to a wealth of exploration opportunities in another top-tier mining district with proven mineral endowment. GEMC believes that the sizeable property package it has locked up in the heart of a very prolific and proven district, hosts the potential for significant cobalt exploration upside.’

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation.  Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits.

Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge.  These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. It joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

The Author does not hold any position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.
Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

Thursday saw Global Energy Metals (TSX-V:GEMC) bag the right to use a major new hydrometallurgical process that it expects to accelerate the development of its Lovelock and Treasure Box projects in Nevada. The Canadian cobalt developer has amended the terms of a non-binding MoU with Canada Cobalt Works to secure a binding agreement for the right to use the company’s Re-2OX technology at its sites for one year.

Re-2OX is a proprietary and environmentally green hydrometallurgical process that recovers cobalt, precious metals, and base metals without using a traditional smelter. Canada Cobalt has said that the operation can create battery-grade cobalt sulphate, adding that nickel-manganese-cobalt battery-grade formulations are also in the pipeline.

Global Energy expects Re-2OX to complement a more extensive exploration and drilling program at Lovelock and Treasure Box that will allow for a reinterpretation of historical data. The business believes this will give it a better understanding of its ability to unlock their cobalt, nickel and copper potential.

The firm will pay Canada Cobalt Works $50,000 in cash and issue it with $150,000 worth of its shares to use the technology. The shares will each be priced at $0.075 and come with one 36-month warrant exercisable at $0.10.

Lovelock and Treasure Box are based around 150km east of Tesla’s major battery factory in Sparks. Lovelock covers around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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, is 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 1.52pc copper over 85ft, with mineralisation beginning at the surface.

Thursday’s update also saw Global Energy reveal that it has made significant progress in its Nevada fieldwork. The organisation recently completed a site visit at Lovelock that saw it take several selective samples from the project. It said that lab results from these samples compare well and reinforce confidence in the historical numbers for battery metals including cobalt, copper, and nickel within the asset.

The company also sent c.100kg of material from the site to SFS Canada as part of its work with Canada Cobalt around the use of the Re-2OX process. Lab findings on the content support the development of an initial work programme at Lovelock that includes additional surveying and sampling. This work will also include an integrated model of the historical workings and geological data from the asset that will be used to extrapolate high-priority targets for future drilling.

Chief executive Mitchell Smith said planning for this work is well underway, adding: ‘The Lovelock property has delivered historical cobalt, nickel and copper production and, more recently, encouraging assay numbers from samples taken during our site visit earlier this month. We are keen to get to work and explore the property-wide potential of this asset and work alongside Canada Cobalt Works in unlocking value through the Re-2OX process.’

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November. Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation. Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits. Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge. These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. Its joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

Today’s guest is Mitchell Smith, Chief Executive Officer of Global Energy Metals (TSX-V:GEMC). Global is is positioning itself as a leading cobalt explorer and developer in the famed Mt. Isa mining district in Queensland, Australia through the advancement of the Millennium Cobalt Project and Mt. Dorothy and Cobalt Ridge projects, creating a district-scale cobalt exploration and development opportunity. ​​​​

The Company also has an option on two battery metal projects, the Lovelock Cobalt Mine and Treasure Box, located on the doorstep of the world’s largest lithium-ion battery production plant, the Gigafactory One that Tesla Motors Ltd. and partner Panasonic Corp. have built in Nevada.

Global has just become sole owner of the Millennium project and the Mt. Dorothy and Cobalt Ridge projects. Mitchell explains why he believes these assets are potentially transformational for the company, discusses it’s operations in Nevada, and gives his opinion on the wider cobalt space.

This interview was recorded on 10th July 2019.

All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate. MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG) #gold #mining #investing

Author: Stuart Langelaan

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

The Author has been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Systems Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Systems 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 Catalyst Information Systems Ltd are not responsible for its content or accuracy. 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.

Today’s guest on the MiningMaven podcast is Mitchell Smith, CEO of Global Energy Metals, listed on the TSX-V exchange in Canada (TSX-V:GEMC). Global Energy is focussed on a number of Cobalt projects, including the 100pc owned Millennium Project and two neighbouring discoveries in Australia’s Mount Isa region. The company also has an option on the Lovelock Cobalt Mine and Treasure Box asset in Nevada, well-located near Tesla’s Gigafactory. In the interview, Mitchell discusses recent progress at the firm’s projects as well as giving his opinion on the current and future outlook for the cobalt market.

This interview was recorded on 20th August 2019.

All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small-cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate. MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG) #gold #mining #investing

Author: Stuart Langelaan

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

The Author has been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Systems Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Systems 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 Catalyst Information Systems Ltd are not responsible for its content or accuracy. 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.

In today’s podcast Mitchell Smith, CEO of Global Energy Metals (TSX-V:GEMC), explains the company’s strategy of being a pure-play on Cobalt.

Global Energy Metals is developing a number of Cobalt projects across Australia, Canada and the US and recently signed a Definitive Agreement to acquire the Lovelock Cobalt Mine and Treasure Box Project in Nevada. Both are around 150km away from the Tesla Gigafactory. Smith also discusses the company’s plans for an additional list in London.

This interview was recorded on 14th March 2019.

All opinions expressed are those of MiningMaven and the respective guests, unless otherwise stated and should not be construed as investment advice or a recommendation to buy shares in any featured Company. From time to time MiningMaven principals may take equity positions in companies featured. Listeners are advised to do their own extensive research before buying shares which, as with all small-cap exploration stocks, should be viewed as high risk. Investors should also seek the advice of a qualified investment adviser or stockbroker as they deem appropriate. MiningMaven.com is a trading division of Catalyst Information Services Limited. Registered in England no. 06537074 (Registered Office Address 3rd Floor Ivy Mill, Crown Street, Manchester, M35 9BG) #gold #mining #investing

Author: Stuart Langelaan

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

The Author has been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Systems Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Systems 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 Catalyst Information Systems Ltd are not responsible for its content or accuracy. 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.

Cobalt consumers were served another stark reminder of the need for more significant amounts of secure metal supply last month following a fatal mine collapse and a warning from UK scientists on diminishing reserves.

At least 19 illegal miners were killed at a copper and cobalt mine operated by Katanga, a subsidiary of Glencore in the DRC (Democratic Republic of Congo) last Thursday. Despite dipping 5pc, Glencore said the incident at the mine, which is frequented by around 2,000 unauthorised artisanal miners daily, will have no impact on Katanga’s forecast 24,000ts of copper production this year.

However, the news serves as a grim reminder of the issues associated with the cobalt sector’s over-reliance on the DRC, one of the poorest and most politically unstable nations in the world. Companies with operations in the DRC are currently facing challenges in the areas of environment, health and safety, and human rights when cobalt is extracted through artisanal mining. This dangerous practice makes up around 15-20pc of Congolese cobalt production. There are also concerns around the use of child labour in the nation, while the cost of doing business has also increased thanks to a recent mining code change that saw royalty costs shoot up to 10pc.

With around 60pc of the world’s cobalt currently being sourced from the nation, such issues can have a significant impact on both prices and supply. For example, prices soared last October after Glencore abruptly halted sales of the metal from the country after discovering uranium at its key mine.

In response to the DRC’s ongoing volatility, leading car maker BMW even revealed plans in April to stop buying cobalt for its electric vehicles (EVs) from the Democratic Republic of Congo (DRC) in 2020/21. If more carmakers were to follow BMW in cutting off their ties to DRC’s cobalt market, then it raises the question of where supply is going to come from – especially if EV demand explodes as predicted.

This issue was highlighted once again last month by British scientists who warned that if EVs replace the UK’s 31.5m cars by 2050, as per government plans, it will require twice the current annual global cobalt supply. In a letter to the country’s Committee on Climate Change, the team of scientists said replacing the vehicles will require 207,900ts of cobalt as well as 264,600ts of lithium carbonate and 2,362,500s of copper.

Encouragingly, the last months have seen developed nations such as the US launch renewed efforts to increase domestic cobalt supply. For example, in May, US Senator Lisa Murkowski announced plans to introduce a Minerals Security act alongside fellow senator Joe Manchin. The bill would support the development of cobalt, lithium, graphite and other electric-vehicle supply chain minerals mines in the US. Meanwhile, last month saw US President Donald Trump and Canadian Prime Minister Justin Trudeau announce plans to develop a plan for US-Canada collaboration on critical minerals such as cobalt.

An ongoing move away from the DRC against a backdrop of growing cobalt demand and political recognition creates a strong backdrop for junior miners with cobalt assets in stable jurisdictions. One such example is Global Energy Metals (TSX-V:GEMC | OTC:GBLEF), which is currently preparing to build upon its strong UK shareholder base by co-listing in London.  The firm is developing a diversified global portfolio of cobalt assets, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia, where it just recently announced the acquisition of 100pc of it along with two prospective cobalt-copper assets making it one of the largest cobalt focused explorers in Queensland by land size. It is also developing two Nevada-based battery metal sites called the Lovelock Cobalt Mine and the Treasure Box Project. These are located just 150km east of Tesla’s Gigafactory. Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada.

On last month’s developments, the company’s chief executive and director Mitchell Smith said: ‘It is tragic to learn of the deaths of so many artisanal miners in the DRC.  Unfortunately, this tragedy highlights the delicate reality that nearly twelve million Congolese rely on artisanal mining as a way to find the means to escape poverty.  Approximately a third of the cobalt supplied in 2018 was as a result of artisanal mining, some of which was done illegally, emphasising the need to establish responsible mining initiatives and support from all levels of the supply chain and governments. It also sets in motion the need for a diversified supply chain to break the nearly monopolistic supply of cobalt production from a fragile and unstable jurisdiction. Core to this is the need for capital investment and funding to allow for companies to advance projects in safe, top-tier mining jurisdictions like Global Energy Metals has in Australia, Canada and Nevada, that can supply critical metals, including cobalt, to feel the growing demands brought on by the electric vehicle and energy storage revolution underway.’

Author: Daniel Flynn

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

The Author has been paid to produce this piece by the company or companies mentioned above.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

Canadian cobalt developer Global Energy Metals (TSX-V:GEMC) revealed that it has increased the size of its recently-announced $500,000 private fundraise by $250,000 on Wednesday in response to high demand. On Friday, the firm - which is raising the money to support a phase one exploration programme at its two projects near Tesla’s Gigafactory in Nevada - said it will now issue 16,270,000 units to raise a total of $813,500 in the oversubscribed placing.

Each unit distributed in the non-brokered, private placement will comprise one $0.05 share and one three-year warrant exercisable at $0.10. Upon first announcing the raise last week, Global Energy said it had also approved the settlement of up to $181,500 of debt by issuing shares at $0.05 each to certain creditors.

The company, which announced plans to co-list in London earlier this year, will use its placing proceeds to advance its Lovelock and Treasure Box projects ‘immediately’. The two properties are located in Churchill County, around 150km east of the Tesla Gigafactory in Sparks, Nevada.  Lovelock covers around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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, is 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 1.52pc copper over 85ft, with mineralisation beginning at surface.

Nevada progress

Last month, Global Energy announced that it had made its first option payment towards acquiring an 85pc stake in both Lovelock and Treasure Box. It issued 384,627 of its shares to the projects’ current owner Nevada Sunrise and paid $20,000 to the underlying vendor.

Speaking to MiningMaven in February, Global Energy’s chief executive Mitchell Smith said the acquisition gives the business a low-cost entry to an exciting jurisdiction close to the world’s largest battery factory:

‘Some of the grades at these sites are exceptional. Historically, grades were reported as high as 14-15pc cobalt, which is just unheard of. It shows there is a real opportunity in this significant land package covering two past producing mines. Given our proximity to Tesla, this could really provide us with unique access to the growing demand for domestic cobalt supply in the US.’

In its March update, Global Energy also said it is reviewing exploration plans for Lovelock and Treasure Box. It said its first-stage exploration programme would assist it with an ongoing, extensive review and reinterpretation of historical data at both sites.

‘There has been a tremendous amount of attention placed on the US for it to stop being merely a bystander in the global battery arms race and start developing more domestic supplies of battery metals such as cobalt, nickel and copper to supply its homegrown battery factories, including Nevada-based Gigafactory 1,’ said Smith. ‘The Lovelock and Treasure Box projects are prime examples of US-based battery metal projects that are very prospective and strategically located in close proximity to a domestic end-user with a large appetite for the critical materials used in EV and energy storage technology.’

Global Energy focuses on offering security of supply of cobalt, which is a critical material in the rapidly growing rechargeable battery market. It is building a diversified global portfolio of assets in the sector, including project stakes, projects and other supply sources.

The business’s flagship asset is the Millennium Project in the world-renowned Mt. Isa region of Queensland, Australia. It executed the final agreements to take a 100pc interest in the project in November.

Millennium is a multi-zone, near-surface cobalt-copper sulphide system with several kilometres of potential strike length. It is located near established mining, transport, and processing infrastructure and offers easy access to a very skilled workforce.

The growth-stage site contains a defined zone of cobalt-copper mineralisation.  Here, a 2016 JORC Resource estimate identified 3.1MMts of inferred resources containing 0.14pc cobalt and 0.34pc copper with gold credits.

Global Energy is now looking at ways to increase the size of its deposit. Results from a first phase exploration campaign at two zones called Millennium North and Millennium South exceeded grade and thickness expectations. The firm will now carry out a second phase of drilling to examine both areas further.

Alongside Millennium, Global Energy has acquired two further discovery sites called Mt. Dorothy and Cobalt Ridge.  These are collectively known as the ‘Mt. Isa projects’. The areas expand Global Energy’s Australian land position by nearly twenty times but have yet to be exploited. Exploration to date has returned high-grade cobalt intercepts at both, allowing Global Energy to line up numerous targets for further investigation and test work to define a resource.

Finally, the business currently owns 70pc of the Werner Lake cobalt mine in Ontario Canada. It joint venture partner Marquee Resources is enjoying much success in its ongoing exploration campaign at the asset.

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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

The global shift away from internal combustion engine-powered cars and towards electric vehicles (“EVs”) continues to accelerate at a record pace. With growing demand for the metals involved in the production of EV batteries being complemented in many cases by supply-side disruption, a major investment opportunity has arisen.

According to the International Energy Agency (“IEA”), electric car usage has been soaring over the last decade, with global stock passing five million in 2018 – a 63% increase on the previous year. However, this annual growth rate looks set to accelerate further moving forward. The same organisation expects the number of EVs on the road to hit 125 million by 2030, while JP Morgan believes that EVs and hybrid electric vehicles will account for 30% of all vehicle sales by 2025.

The reasons for this accelerating uptake are varied, encompassing improving technology, increasing environmental consciousness, and – critically – growing government support. Leaders around the world are setting ambitious targets and granting generous incentives to encourage the complete phase-out of traditional vehicles in favour of plug-in EVs in their respective nations. For example, the UK government’s current policy is to insist that, by 2040, all new cars and vans sold in the UK should be zero-emissions capable. Meanwhile, China aims to have five million EVs on the road by the end of 2020, increasing to over 80 million by 2030.

However, when it comes to meeting these ambitious targets, getting the public on board is just one half of the battle. The other half is ensuring that the capacity exists to meet the demand for EVs and their related charging infrastructure – a burden shared by governments and automobile manufacturers alike.

The wheels are already in motion here. Earlier this month, Canada and the US announced that they had finalised the Canada-US Joint Action Plan on Critical Minerals Collaboration. This aims to reduce both nations’ dependency on outside sources when it comes to sourcing “critical minerals” – many of which are required to build EV batteries – by securing supply chains. As well as the EV sector, this covers areas like manufacturing, communications, aerospace, and defence. Likewise, the US and China recently inked an initial trade deal that will boost America’s production of rare earth metals – critical to EV production because of their powerful magnetic properties.

Waking up to change

Key EV nations have woken up to the need to secure domestic energy metal supply, and these growing efforts throw yet more weight behind forecasts of a real explosion in uptake. The metals used in the production of these vehicles – particularly their batteries - are a clear beneficiary of this milestone. One of the most interesting is cobalt, a critical raw material for electric transport used in most common types of lithium-ion batteries.

Alongside an anticipated surge in demand like many of its battery metal peers, cobalt is experiencing severe supply-side disruption. This comes almost entirely down to the fact that nearly two-thirds of the metal comes from the Democratic Republic of the Congo (“DRC").

The cobalt industry in the DRC is well known for its vast artisanal mining contingent. Artisanal mining may be a vital source of income for many, but it also throws up many issues such as safety, child labour, and human rights abuses. These problems faced unprecedented levels of exposure last July when dozens of illegal miners were killed at Glencore’s Mutanda copper/cobalt mine after a wall collapsed. The firm subsequently shut the mine, effectively removing 20% of the world’s cobalt supply from the market. In the wake of this, several companies – including BMW and Apple – announced that they would stop buying cobalt from the DRC or at the very least insist on tighter regulations over working conditions.

Meanwhile, some areas of the EV market are even looking at ways to cut the amount of cobalt used in the batteries powering their vehicles. Tesla boss Elon Musk has pledged to remove the mineral from the next generation of his company’s cars and has already reduced the amount used in Tesla batteries from 11 kilograms per vehicle to 4.5 kilograms. Likewise, global tech companies like South Korea’s SK Innovation and LG Chem and the UK’s Johnson Matthew are researching ways of making cobalt-free batteries.

However, the reality is that removing cobalt from lithium-ion batteries is more easily said than done. Benchmark Minerals’ forecasts suggest that global demand for cobalt in 2029 will be 300,000 tonnes compared with an estimated 70,000 tonnes in 2019. Meanwhile, Tesla is thought to be inking a long-term contract with Glencore to ship cobalt to its new EV factor in Shanghai – suggesting the metal will remain key to the company’s expansion over the next few years at least.

So, while the movement away from cobalt may one day occur, for the time being, it appears to remain merely an idea than a reality. This poses an interesting dynamic for the metal in which its usage hasto grow alongside accelerating EV adoption at the same time as industry participants are eschewing its key supplying nation. A clear beneficiary, therefore, appears to be companies with cobalt projects in the remaining 40% of supplying countries that are presumably giving rise to fewer ethical and jurisdictional issues than the DRC.

One such example is Global Energy Metals (TSX-V:GEMC), a pure-play cobalt business building a portfolio of projects in stable jurisdictions such as Queensland in Australia, Nevada in the US, and Ontario in Canada. Chief executive Mitchell Smith explains that the company has positioned itself ahead of the curve when it comes to the global trend of moving away from areas such as the DRC to source increasing amounts of cobalt.

“As the global energy landscape evolves it is becoming much more mineral and metal intensive. Increasing the global production of batteries to electrify vehicles and power electronic devices will demand enormous quantities of critical minerals like cobalt. But the development of new mines, especially those in jurisdictionally safe mining districts in close proximity to refining capacity and end-use markets is not keeping pace,” he says.

“This paves the way for Global Energy Metals to continue to grow its strategies on a number of verticals and be integrated into the battery economy through collaboration with fellow industry peers with the direction of building a stable supply chain and mineral independence.”

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

Battery metal miners with US-based projects received a welcome boost last week after plans to streamline domestic regulation and permitting requirements in the sector were unveiled at a major industry conference. Speaking at a Washington-based event on Thursday hosted by Benchmark Minerals Intelligence, US Senator Lisa Murkowski said she plans to introduce the Minerals Security act alongside fellow senator Joe Manchin.

Murkowski, who chairs the US Senate’s Energy and Natural Resources Committee, told Reuters the act would support the development of lithium, graphite and other electric-vehicle supply chain minerals mines in the US. The directive will form part of growing efforts to curb China’s increasing dominance in the electric vehicle (EV) space.

Although electric-focused automakers and battery manufacturers like Tesla and Volkswagen wish to expand in the US, they are currently reliant on mineral imports rather than domestic mines and processing facilities. The chief source of this supply is China, which produces nearly two-thirds of the world’s lithium-ion batteries. The US, meanwhile, manufactures just 5pc.

‘Our challenge is still a failure to understand the vulnerability we are in as a nation when it comes to reliance on others for our minerals,’ Murkowski said. She added that China’s lead in the EV space – which is expected to soar over the coming decades – also gives it an edge in its ongoing trade disputes with the US.

The US is not the only country worried about China’s dominance over the growing EV supply market, either. Indeed, France and Germany both asked the European Commission to support a €1.7bn battery cell consortium earlier this week. Also in attendance at Thursday's event was Tesla, which highlighted its concerns around a global shortage of nickel, copper, and other EV battery minerals in the future due to underinvestment.

The combination of concerns over global supply and increasing efforts to boost the US battery metals sector is encouraging for those firms already operating projects in the sector. For example, Tim McKenna of Piedmont Lithium - which is developing a lithium project in North Carolina – said at Thursday’s event: ‘We need to focus the United States on the fact that China is way ahead of us in the electric vehicle race.’

A potential beneficiary that we have previously covered on Mining Maven is Global Energy Metals (TSX-V:GEMC). Last month, the Canadian developer- which is planning to co-list in London- revealed that it had made a payment allowing it to begin exploration work at the two US cobalt projects it is buying in Sparks, Nevada. The properties are called Lovelock and Treasure Box and are located in Churchill County, around 150km east of Tesla’s major battery factory in Sparks.

Lovelock covers around 1,400 acres and is said to have produced 500ts of cobalt and nickel 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, is 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 1.52pc copper over 85ft, with mineralisation beginning at the surface.

Global Energy has agreed to buy an 85pc-interest in the projects from Nevada Sunrise, making its first option payment in March. In April, it raised $813,500 in an oversubscribed private placing intended to support its work programme in Nevada.

Speaking to Mining Maven in February, Global Energy’s chief executive Mitchell Smith said the acquisition had given the business a low-cost entry to an exciting jurisdiction close to the world’s largest battery factory:

Author: Daniel Flynn

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

Catalyst Information Services Ltd, the owner of MiningMaven.com, owns a position in the stock(s) and/or financial instrument(s) mentioned in the piece.

Catalyst Information Services 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 Catalyst Information Services Ltd are not responsible for its 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