Vancouver, BC - TheNewswire - October 19, 2021 - Global Energy Metals Corporation(TSXV:GEMC) | (OTCQB:GBLEF) | (FSE:5GE1)(“Global Energy Metals”, the “Company” and/or “GEMC”), a company involved in the investment exposure to the battery metals supply chain, is pleased to announce the signing of a letter of intent between Electric Royalties Ltd. (“Electric Royalties” and/or “ELEC”) and Scandinavian Resource Holdings (“SRH”) to create a new 1% Net Smelter Royalty (the “1% NSR”) on four exploration licenses totaling 25 square kilometers in the Rna mafic-ultramafic intrusion in Northern Norway and includes the past producing Bruvann Nickel mine (the “Rna Project” or “Rna”).
Rana Nickel Royalty Acquisition Highlights
- Includes the past producing Bruvann Ni-Cu-Co mine which has significant historical resources remaining after production shut down in 2002, following 13 years of production due to low nickel prices;
- Located adjacent to main north-south highway and in an area with a long history of mining and skilled manpower;
- Available mine infrastructure includes power, roads, and conveyor from mine site to existing port facilities;
- Large historical drill database demonstrating compelling near mine exploration potential;
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- Underexplored property with demonstrated exploration potential and re-start potential; and
- GEMC to receive cash and share equity in Electric Royalties further increasing its exposure to the company and its growing portfolio of technology enabling metal projects.
Mitchell Smith, CEO of Global Energy Metals commented:
“We are excited to partner again with Electric Royalties and strengthen our ownership in their company while benefiting further from the added exposure our shareholders will gain through Electric’s impressive royalty portfolio and the raw materials that are building an electrified future. We see Electric as the perfect partner to strengthen awareness about the Rana Project and attract further investment to advance this important class-1 sulphide nickel project.”
Brendan Yurik, CEO of Electric Royalties commented:
“We are very pleased to add Rana to our royalty portfolio as it represents our first exposure to nickel. Furthermore, we are excited about the potential of the mine’s restart as well as the prospectivity of the surrounding land package. The mine was shut down in 2002 due to low nickel prices which averaged less than $4/lb during its operation. Market conditions have now changed and nickel prices are more than double what they were when the mine shut down. Given the projects excellent jurisdiction, good infrastructure and available skilled workforce we believe that Rana has excellent potential to help supply the nickel required to transition the world away from fossil fuels and toward a decarbonized global economy.”
Rana Project Overview
The Rna Nickel-Copper-Cobalt project is jointly held by GEMC and SRH and located on the Ofoten Fjord in Northern Norway and is ice-free year-round. The project includes the past producing Bruvann Ni-Cu-Co mine which was in production from 1989 until 2002 and processed 8.2 million tonnes of ore at an average grade of 0.52% Ni, 0.1% Cu and 0.02% Co.
A historical estimate of the remaining resource is 9.15 million tonnes at approximate grades of 0.36% Ni, 0.09% Cu and 0.01% Co above a cut-off of 0.3% Ni.1 The mineralization is reported to be open in several directions.
The estimate was obtained from a report prepared by the Norwegian Geological Survey (NGU). No classification of the estimate was reported. The estimate is historical in nature and does not qualify as mineral resources under CIM Definition standards and NI 43-101. A qualified person under has not done sufficient work to classify the estimates as current mineral resources and the Company is not treating them as current.
Bruvann is located 2 km away from a shipping dock with an existing conveyor connecting dock facilities from the mine site. Mine roads and power facilities as well as some of the mine buildings have been maintained and the main North-South highway in the region crosses the property.
For more information on the Rana Project please refer to GEMC’s website linked here.
1The past production and historical estimate for the Rna Project is reported in Carl Olaf Mathiesen and Rognvald Boyd, 2017: History of exploration of the nickel resources of the Rna Intrusion, Nordland, Norway, NGU Report 2017.31, available at https://www.ngu.no/upload/Publikasjoner/Rapporter/2017/2017_031.pdf .
Terms
Electric Royalties is creating the 1% NSR on the Rna Project for a total consideration of 2,000,000 common shares of the Company (“Consideration Shares”) and $100,000 cash payable to GEMC and SRH payble to GEMC and SRH in proportion to ownership. The Consideration Shares will be subject to a voluntary escrow lock-up agreement which provides that 50% of the common shares will be subject to a hold period of 4 months and one day, 25% for 8 months and the remaining 25% for 12 months. The transaction noted herein is subject to completion of due diligence, approval of the TSX Venture Exchange and other customary conditions.
Qualified Person
Mr. Paul Sarjeant, P. Geo., is the qualified person for this release as defined by National Instrument 43-101 - Standards of Disclosure for Mineral Projects.
https://www.thenewswire.com/press-releases/1k1vFDw35-global-energy-metals-signs-agreement-with-electric-royalties-and-scandinavian-resource-holdings-to-create-1-nsr-on-the-rana-nickel-cobalt-copper-project-in-norway.html