Global Energy Metals Enters Into Option Agreement For Werner Lake Cobalt Project To Advance Past-Producing Primary Cobalt Mine
(TheNewswire)
Vancouver, BC / TheNewswire / November 30, 2017 / Global Energy Metals Corp. TSXV:GEMC | FSE:5GE1 (“Global Energy Metals”, the “Company” and/or "GEMC") announced today that is has entered into an option agreement (the “Option”) with Canadian Co27 Pty Ltd., an Australian company (the “Optionee”) that will, as a condition to the agreement, be acquired fully by
Marquee Resources Limited (“Marquee”) and have the rights to earn either a 30% or a 70% interest in the Werner Lake Cobalt Project located in Kenora Mining District, Ontario (the “Property”).
The Werner Lake Cobalt Mine operated in the 1940s as a high-grade source of cobalt. Since that time, the project was taken back to mine decision by Canmine Resources. Canmine Resources completed a significant amount of work on the project including; helicopter-borne geophysics, approximately 22,860 m of diamond drilling over numerous campaigns, several resource calculation and approximately 258 m of underground ramping, drifting and raising into the West Cobalt Deposit. They also completed a 10,000 tonne bulk sample and metallurgical bench test milling and chemical analysis on the mineralised material. Canmine Resources also completed several preliminary feasibility studies and economic modeling and were in the process of completing a definitive feasibility study when they filed for bankruptcy. Additional work was completed in 2009-2010 by Puget Ventures and all this work formed the basis for the recent NI 43-101 resource report issued by GEMC (
see press release September 6, 2017). A work program including diamond drilling (+3,500 m), to further upgrade resource categories and extend the mineralised envelope, as well as additional metallurgical work and underground chip sampling has been recommended. The mineralised zones remain open in all directions.
Mitchell Smith CEO of Global Energy Metals said, “We are very pleased to be advancing this important Canadian cobalt project with our newest partners. Their strong funding and operating team was an important consideration in partnering with them to ensure that the Werner Lake project advances and builds value for shareholders under the current cobalt market conditions.”
Charles Thomas, MD of Marquee Resources Limited, “Werner Lake is one of the key cobalt resources in Canada and this partnership will ensure that it advances as quickly as possible. We will move quickly to activate the development program.”
The Marquee team includes Charles Thomas, a well known corporate financiere and capital markets leader in Australia who sits on a number of boards and holds responsibilities for sourcing and financing projects. Mr Thomas has worked in the financial service industry for more than a decade and has extensive experience in capital markets as well as the structuring of corporate transactions. Mr Thomas’s previous directorships include among others AVZ Minerals Ltd, Liberty Resources Ltd, Force Commodities Limited and Applabs Technologies Ltd. where he was responsible for the sourcing and funding of numerous projects.
Joining Mr. Thomas, is Mark Ashley, who has spent over 30 years as a senior executive with a number of successful listed mining and exploration companies, with the past 20 years based in Western Australia. Mr. Ashley held the role of CEO of Canadian listed LionOre Mining International Ltd, a company that was transformed from being to becoming one of the world's largest nickel producers in less than 10 years and acquired by Norilsk in a $6 billion cash takeover bid between it and Xstrata. Mr. Ashley has held other senior executive roles managing and implementing significant corporate growth and consolidation strategies in the mining and exploration sector including Cluff Resources PLC (UK), Normandy Mining (Australian) and Apex Minerals (Australian), among others.
As consideration for Global Energy Metals entering into the agreement, GEMC shall receive a non-refundable deposit of A$25,000 and a further A$175,000 and such number of publicly traded shares of Marquee, having an aggregate value of A$100,000 upon satisfaction of certain conditions precedent.
In addition, if an encouraging Pre-feasibility study according to commercially reasonable standards is obtained, with respect to any part of the Property, the Optionee shall cause Marquee to pay GEMC A$150,000.
In order to maintain in force the Option granted to it, and to exercise the Option, the Optionee must incur expenditures of A$1,000,000 to earn a 30% interest in the property and a further A$1,500,000 (for a total of A$2,500,000) to earn a 70% interest in the Property. The parties will enter into a customary joint venture agreement once the Optionee exercises its Option to acquire either a 30% or 70% interest in the Property.
GEMC and the Optionee shall appoint an Exploration Management Committee to approve programs and to oversee the implementation of the programs that will be used to advance the Werner Lake project.
GEMC and the Optionee will have the right to take in kind and separately dispose of, in proportion to its interest in the Property, all minerals produced by the Property to any third party or downstream users as each party may so elect (in its absolute discretion).
