The rechargeable battery market has been generating plenty of attention over the last several years thanks to the growing demand from the automotive industry and — in particular — electric vehicles.
In line with this, the demand for rechargeable batteries will continue growing as the prevalence for consumer electronics will lead to the continued usage of lithium-ion batteries as a product type.
To keep up with the growing need for rechargeable batteries, companies in the space continue to ramp up their efforts — and
Global Energy Metals (TSXV:GEMC, OTC Pink:GBLEF, Forum ) is looking to join those ranks through its diversified portfolio of exploration and growth-stage battery mineral assets.
Case in point, the company has several projects under its belt with a primary focus on the Lovelock Mine and Treasure Box Projects in Churchill County, Nevada.
Through the company’s subsidiary U.S. Battery Metals, Global Energy Metals has acquired an 85 per cent interest in the Lovelock and Treasure Box projects with Nevada Sunrise holding 15 per cent interest in the property.
As it currently stands, the property contains 81 unpatented lode claims in the Cottonwood Canyon Area totalling roughly 1,586 acres.
After being discovered in 1880, the Lovelock mine has not seen any production in over a century, which gives Global Energy Metals a unique opportunity to unlock the value potential of the property.
While the project has been undergoing discovery-stage exploration, that is about to change as the company gears up to begin its first-ever drilling program at the property in May.
Ahead of the drilling program, Stockhouse Editorial had the opportunity to catch up with Global Energy Metals CEO Mitchell Smith to discuss the project, some recent milestones and what investors can anticipate moving forward.
Thanks for joining us. Can we start with the Lovelock project. What is the company hoping to achieve once it starts the drilling program?
MS: Thank you very much for helping strengthen investor’s awareness of Global Energy’s multi-commodity battery metal portfolio. As we’ve highlighted in the past, limited, yet high-grade, production of cobalt, nickel and copper has been reported on the property with the general average grade of the 200 tonnes shipped at the turn of century being 14 per cent cobalt and 12 per cent nickel.
The first phase drilling program at the Lovelock Mine Project is intended to confirm intersections of cobalt-nickel-copper bearing vein that correlates with historical underground mining and mapped superficial cobalt-nickel-copper occurrences. It is anticipated the drill program will demonstrate broader mineralization across the width and depth of the occurrence which remains open in all directions.
This is the first-ever drilling program to be done at the Lovelock project — how significant is this milestone for the company?
MS: Although mined in the past, the project has never been drilled and has really been void of any modern day exploration techniques due to fragmented ownership until we got involved. So, yes, this inaugural drill program on the property is highly significant. We see it providing important structural data to complement the geophysical studies and ground work we did. We also believe it has a strong opportunity to confirm high grade mineralisation historically recorded on the property.
When do you anticipate the first phase of the drilling program to begin, and what will the next steps be after that?
MS: Timing is really being dictated by the closing of a financing underway that in addition to accelerating the exploration program at Lovelock will also allow GEMC to execute on a number of corporate building initiatives. We’ve already received sizeable financial commitments from two New York based institutional investment management firms and expect to close in the very near future given the level of interest expressed. With that said, we’re already in active discussions with a number of drilling operators to begin the approximate 8 hole - 1,400 metre short-hole drill program as soon as possible.
Global Energy Metals also recently announced it will acquire a strategic interest in the Råna Nickel-Copper-Cobalt project, including the past-producing Bruvann Nickel Mine — can you talk about this milestone for the company and how this strategic interest will benefit Global Energy Metals?
MS: As we’ve demonstrated with the other projects we hold in our portfolio of copper, nickel and cobalt projects, Global energy is focused on investing, exploring and developing prospective, scaleable assets in established mining and processing jurisdictions that are in close proximity to end-use markets. This is especially topical today given countries across the globe are demanding localized, regional supply of raw materials and their processing and manufacturing into end products.
This is why we added a European asset to our project base and are taking a strategic interest in the Scandinavian peninsula with the Rana and Bruvann Nickel mines in Norway. Norway is a country that continues to lead the charge in electric vehicle adoption, at a rate of up to 85 per cent this past year, and is leveraging its plentiful renewable green energy sources to establish the country and neighbouring region as a European presence in being a sustainable battery manufacturing hub.
Global Energy Metals has other projects in its pipeline. Is there any recent activity on these projects you can touch on that investors might want to know about?
MS: We recently expanded our footprint in North America with acquisitions of prospective copper-silver-gold and nickel-copper-cobalt exploration properties in Idaho and Quebec. Early exploration results announced on Monument Peak in Idaho has shown not only exceptionally high grades of copper, which will be needed for the US’s domestic supply to continue the electrification of their transportation system, but also significant concentrations of gold and silver. Partnership is also very much a part of our corporate mandate and we recently took a sizeable equity interest in Electric Royalites through a royalty sale of our Queensland portfolio.
This not only helps future advancement of our Millennium and Mount Isa Projects through the cash consideration received but also provides our shareholders with a way to participate in an aggressive and rapidly growing royalty company focused on minerals core to the electric revolution that we may not hold in our portfolio.
Moving into the rest of the year, what are some milestones the company has on the horizons our investor audience should be watching for?
MS: Closing of our financing will really begin the process and allow us to execute on a number of immediate catalysts including the drill program at Lovelock. That said, we’re also evaluating other opportunites to strengthen our consolidation strategy and ensure that Global Energy is involved with other battery metal projects that are being driven by external balance sheets.
Additionaly we’re looking at ways to further monetize existing projects to unlock value and advance the projects without dilution while still benefiting from the exploration upside. Finally, we’re working with key marketing and strategic partners to ensure that the GEMC opportunity gets the investment audience it deserves and that this is reflected in our market’s liquidity and share price.
With the demand for rechargeable batteries continuing to rise — and with the company’s diversified portfolio of exploration and growth-stage battery mineral assets — where does Global Energy Metals fit into this future growth?
MS: We recognize that the proliferation and growth of the electrified economy in the coming decades is underpinned by the availability of battery metals. We see the 2020s as being like no other for energy metals and GEMC plans to capitalize on this mega-trend opportunity by paving a path forward for our shareholders to get maximum investment exposure to the battery value chain.
We are going to continue to build upon existing project stakes and deploy fresh capital and leverage share equity to make accretive acquisitions, establish new partnerships and assemble and develop a portfolio of high-quality, high-upside investments to capture the opportunity of this underlying structural change in global battery mineral demand and be part of the battery supply chain solution while creating value for our shareholders.
Thanks again for joining us; Is there anything else I’ve missed that you would like to add?
MS: We are well positioned with strong management and supportive board and advisory team that not only are dedicated to the battery metals sector but who also have a proven track record in building and selling companies. We are meeting the demand of a greener future by accelerating supply exposure to battery metals and the battery supply chain and believe that the
time is now to be part of the electrification movement. Join us in capturing this opportunity and become a shareholder of our growing company either through the private placement or in the market.
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FULL DISCLOSURE: This is a paid article produced by Stockhouse Publishing.