| VANCOUVER, BC / TNW-ACCESSWIRE / APRIL 21, 2016 / GLOBAL ENERGY METALS CORP.(“Global Energy Metals” and/or "GEMC") is pleased to announce a corporate reorganization and capital raise to continue its strategy to acquire project level investments in high quality metals projects providing raw materials to the rechargeable battery market and energy storage sector, including lithium, cobalt, graphite, and vanadium.
The announced reorganization consists of a share consolidation of GEMC’s issued and outstanding common shares, a post-consolidation private placement for the amount of up to USD $2,000,000, on a best efforts basis, and that it is seeking a standby financial commitment for project level ownership.
Global Energy Metals has targeted long-life deposits and high quality mines, located in stable mining jurisdictions and positioned in the lower half of the given sector’s cost curve, increasing the potential for strong capital gains throughout the commodity cycle. These target projects are generally late stage, near production, in production, or with a defined resource. Earlier stage exploration projects with good potential for large scale resources are also being considered. GEMC is considering full buyouts, equity interests or controlling positions in targeted projects depending on the situation.
GEMC will undertake a non-brokered private placement (the “Private Placement”) of post-consolidation units (“Units”) at an issue price of CAD $0.35 per Unit for gross proceeds of up to USD $2,000,000 (the “Offering”). In conjunction with the Private Placement, GEMC will consolidate its share capital on the basis of one post-consolidation common share for every ten pre-consolidation common shares. GEMC currently has 79,322,177 common shares issued and outstanding and expects to have 7,932,217 common shares issued and outstanding upon completion of the consolidation and prior to closing of the Private Placement.
To enable the pursuit of these acquisitions, Global Energy is also in the process of marketing a capital commitment with cornerstone financial partners to fund execution of transactions with public and private companies, in which GEMC acquires sizeable positions in quality mining projects so as to gain exposure to the maximum number and quality of assets.
Mitchell Smith, President & CEO commented:
“We strongly believe this restructuring and financing will provide Global Energy Metals with increased flexibility to pursue project acquisitions and will ultimately provide better access to the capital markets in which to raise larger project development capital required by the company to position us to acquire and drive the rapid advancement of these projects through technical and commercial partnerships with off-take and strategic partners. GEMC plans immediate and aggressive acquisition of certain targeted projects as part of its strategy to build the go-to battery minerals projects bank.”
Each Unit will consist of one post-consolidation common share (“Common Share”) of GEMC and one-half (1/2) of one (1) transferable share purchase warrant (the “Warrants”). Each whole Warrant shall be exercisable to acquire an additional post-consolidation common share of GEMC at a price of CDN $0.40 for a period of one year from the Closing Date. The Warrants will contain an acceleration provision, whereby in the event GEMC completes on a future raise priced equal to or greater than the Warrant price at any time before the one-year anniversary of the Warrant issuance, Warrant holders will have 60 days within which to exercise their Warrants, failing which the Warrants will expire.
The securities to be issued will be subject to a four-month-and-one-day resale restriction.
The funds raised under the Private Placement will be used for corporate restructuring and strategy implementation, to review and conduct due diligence on target acquisitions for battery minerals related projects with an emphasis on cobalt, lithium and graphite, and to provide general business working capital. GEMC has agreed to pay finders' fees on the Private Placement of up to 10% in cash or common shares of the Issuer at the discretion of the agent. The agent can elect to receive the fee in a combination of cash and common shares that will have the same terms as the Private Placement Units.
Global Energy Metals Corporation:
Global Energy Metals is an aggregator of cobalt, lithium, graphite and other battery metals projects, creating an asset bank to ultimately supply market demand for the growing rechargeable battery market. GEMC is a pre-IPO reporting issuer that anticipates growing its business by acquiring project stakes in battery metals related projects with key strategic partners. GEMC currently owns the Werner Lake Cobalt Mine in Ontario, Canada.
For Further Information:
Mitchell Smith
President & CEO
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
t. + 1 (604) 688-4219 |