Vancouver, BC - TheNewswire - August 10, 2020 - Global Energy Metals Corporation (TSXV:GEMC) | (OTC:GBLEF) | (FSE:5GE1) ("Global Energy Metals", the "Company" and/or "GEMC") announces that the board of directors of the Company together with its management team and strategic advisors, has undertaken a process to initiate a strategic review focused on maximizing shareholder value as part of its overall corporate and portfolio optimization strategy.
Most recently, the Company, as part of its aim to increase shareholder value, entered into a definitive purchase agreement to sell a portfolio of royalty interests to Electric Royalties Ltd. (TSXV:ELEC) ("Electric Royalties") on the Millennium Cobalt Project, and the Mt. Dorothy Cobalt Project and the Cobalt Ridge Project located in Queensland, Australia.
Through the meaningful stake in Electric Royalties, Global Energy will have added exposure to the strong and diversified energy mineral asset royalty portfolio that Electric Royalties holds in lithium, vanadium, manganese, cobalt, and graphite, as well as the added benefit of like-minded corporate objectives and growth mandate in a strong critical minerals and clean energy price environment.
As consideration for the 0.5% gross metal royalty on Millennium and the Mount Isa Projects, Electric Royalties will issue to Global Energy Metals 1.15 million shares in Electric Royalties and make a CAD $150,000 cash payment. For more information please refer to the Company's news release dated July 23, 2020.
In connection with the strategic review process, the Company is undertaking a comprehensive assessment to identify and consider a range of opportunities and their potential to enhance shareholder including further acquisition, divestment or spin-out of certain valuable assets which GEMC believes are not currently getting fair value as reflected in its stock price, a merger or business combination with another party, a corporate sale, a strategic partnership or any combination of the forgoing.
Global Energy Metals holds a number of jurisdictionally safe cobalt, nickel, copper and gold mineral projects that are well positioned for further exploration and development all at a time when the battery minerals sector is realigning with price fundamentals due to an expected surge in demand and market growth supported by a global movement towards electrification of vehicles and a greener economy.
For more information on the Company's asset portfolio please click on the following links:
The Company does not intend to set a definite schedule to complete its evaluation process and cautions that there are no assurances or guarantees that the process will result in a transaction or, if a transaction is undertaken, terms or timing of such a transaction.
The Company also wishes to announce that it is terminating its previously announced non-brokered private placement. Please refer to the news release dated March 16, 2020.
The Company remains bullish on green energy minerals and associated technologies and continues to explore opportunities to advance its agenda of having exposure to the critical minerals and technologies associated with the global shift towards climate neutrality through electric mobility and new forms of clean energy storage.
Global Energy Metals is focused on offering security of supply of cobalt, a critical material to the growing rechargeable battery market, by building a diversified global portfolio of cobalt assets including project stakes, projects and other supply sources. GEMC anticipates growing its business by acquiring project stakes in battery metals related projects with key strategic partners. Global Energy Metals now holds 100% of the Millennium Cobalt Project and two neighbouring discovery stage exploration-stage cobalt assets in Mt. Isa, Australia. It also currently owns 70% of the Werner Lake Cobalt Mine in Ontario, Canada, has an option to acquire an 85% interest in two cobalt exploration projects in Nevada, 150km East of the Tesla Gigafactory.
For Further Information:
Global Energy Metals Corporation
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
t. + 1 (604) 688-4219 extensions 236/237
Cautionary Statement on Forward-Looking Information:
Certain information in this release may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with regulatory approvals and timelines. Although Global Energy Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. For more information on Global Energy and the risks and challenges of their businesses, investors should review the filings that are available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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