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Global Energy Metals Corporation (TSXV:GEMC) is building the world’s first “Battery Minerals Project Bank” of advanced-stage, near-production and producing mining projects to supply cobalt and other battery materials to the growing rechargeable battery market.
Global Energy Metals’ management is well-versed in the battery metals supply chain and markets, and the company has developed a strong network of partnerships and relationships with leading battery component manufacturers and other downstream users of battery-related metals. The company is leveraging that alongside the expertise of its world-class partners to evaluate and select high quality assets and build shareholder value.
Global Energy Metals’ flagship property is its wholly-owned Werner Lake Cobalt Project in Ontario, Canada. A past producer with significant potential for resource upgrading and expansion, Werner Lake is one of the only primary cobalt projects in North America. The company is planning to update and complete a NI 43-101 compliant resource for the project and metallurgical test work to determine the viability of producing grade cobalt chemicals.
Global Energy Metals is working to finalize a listing on the TSX Venture Exchange. In September 2016, the company completed an oversubscribed Pre-IPO private placement.
“Completing this financing is an endorsement to the exceptional team, the potential of our initial asset (Werner Lake) and the company’s long-term growth strategy,” commented Mitchell Smith, President and CEO of Global Energy Metals. “Strengthened by this capital, we will now turn our attention to fulfilling our commitment and deliver value building corporate milestones including completing the underlying work necessary to further advance Werner Lake.”
Alongside advancing the Werner Lake project, Global Energy Metals can now begin aggressively pursuing projects on its target list. The company is considering potential full buyouts, joint ventures, equity interests or controlling positions in projects and will also carefully evaluate streaming opportunities in relation to reliable by-product cobalt supplies.
- Strong management team with extensive experience in battery metals project exploration, development and supply chain research and analysis.
- Aggregating battery metals projects with a focus on cobalt to supply growing market demand for battery materials within a diversified portfolio.
- Maximizing shareholder value via project level joint ventures with long-term strategic partners.
- 100-percent owned Werner Lake Cobalt project has had extensive underground development, engineering and metallurgical work completed to date.
- Significant opportunity to increase existing resource with planned exploration and extension program.
- Identified target list of projects and opportunities to be pursued aggressively over the next 18 to 24 months.
Cobalt: Critical Material for Rechargeable Batteries Industry
The cobalt market is expected to experience year-over-year demand growth of 6.5 percent through 2018, according to analysts at Darton Commodities. The booming battery materials market is the biggest driver of cobalt’s growth, set to represent at least 49 percent of end-user demand in 2016. Despite the common name applied to batteries, cobalt chemicals are as critical a component for lithium-ion batteries as lithium itself.
Chinese production of NCM cathode materials (cobalt content of 10-30 percent) increased by an estimated 58 percent in 2015, reaching more than 30,000 MT, according to the China metal information network Antaike. That figure is set to reach 50,000 MT in 2016 and double to 100,000 MT by 2018.
Very few resource companies are pure cobalt plays and production is typically a by-product of copper and or nickel mining, with the largest production coming from Democratic Republic of Congo (DRC). In September 2016, Cobalt Investing News reported that “this year 60 percent of the world’s cobalt supply will come from the DRC, which could be an issue for companies that want full visibility of their resource supply chain.” In 2016, refined cobalt output is projected to drop by 2 percent and global supply is projected to drop by 10.5 percent to a six-year low of 30,050 MT.
Shrinking production levels and robust demand are both expected to result in cobalt supply shortages as early as 2016, bringing on a rise in prices. These changing supply-demand fundamentals are expected to bring about more volatility to market prices in 2016 and beyond, leading to the market entrance of specialist companies such as Global Energy Metals.
Flagship Project: Werner Lake Cobalt Project
The Werner Lake Cobalt Project is located in the Kenora Mining District of northwestern Ontario. The property lies within the Werner Lake Belt that hosts a number of cobalt, copper, nickel deposits including the historic Gordon Lake copper-nickel mine. The project hosts the historic Werner Lake and Werner Lake West cobalt-copper-gold mines as well as several prospective exploration targets.
Cobalt was first discovered in the area in 1921 followed by a period of substantial exploration and work. Between 1940 and 1944, a total of 143,386 pounds of cobalt was produced from the Werner Lake Mine averaging 2.2% Co and 0.75% Cu. From 1996 to 1997, Canmine Resources completed over 75,000 feet of diamond drilling and a total of 847 feet of underground ramping, drifting and raising and the Werner Lake West Mine produced approximately 10,000 tonnes of cobalt ore.
The property has a historical resource base of 7.4 million pounds cobalt, 6.7 million pounds copper and more than 9,000 ounces of gold contained in the West Cobalt and Werner Lake Minesite deposits. These deposits are located about 500 meters from each other.
The historical resource estimate is based on feasibility-level geological, engineering and metallurgical work conducted by Canmine Corp. in the late 1990’s. Canmine’s exploration work led to the discovery of additional mineralized lenses beneath the Minesite deposit.
Metallurgical studies conducted by Canmine resulted in excellent cobalt recoveries of up to 88 percent based on a standard flotation mill process followed by a low-pressure oxidative hyrdrometallurgical leach.
Phase 1 and 2 Drill Results
Global Cobalt Corp. (previously Puget Ventures) conducted a diamond drilling program in the winter and spring of 2009/2010 which included 7,565 meters of coring in 31 drill holes. The results added to the resource base and showed the deposit remains open.
Highlights from the drill program include:
- DDH WL10004 – 1.21% cobalt over 12.30 meters core length (25.4 to 37.3 meters).
- Including a high-grade intercept of over 12.48% cobalt over 0.90 meters.
- DDH WL10023 – 0.83% cobalt over 0.7 meters core length (185.9 to 186.6 meters).
- High-grade intercepts associated with anomalous copper, nickel and gold values.
- Discovery of high grade eastern extension of 800 meters from Werner Lake cobalt deposit.
What’s up next for Werner Lake?
Global Energy Metals is planning a NI 43-101 resource estimate report for Werner Lake based on data from the 2009/2010 drill program. The company is planning to conduct further metallurgical development work to confirm the viability of producing battery grade cobalt chemicals from the project.
Erin Chutter—Executive Chairperson and Director
Erin Chutter is the Founder of Puget Ventures and previously an Officer/Director of Global Cobalt. Chutter has also served as a consultant for Platinum Group Metals, Mag Silver and West Timmins Mining. Her expertise in management, finance, M&A, strategy and operations acted to put in place innovative offtake and finance mechanism with battery manufacturers. Chutter has held various positions for federal and provincial government officials, including the Leader of the Federal Opposition, Minister of Indian Affairs and Minister of Defence. She sits on the Board of the MacDonald Laurier Institute, and is the Chair of the Canada Eurasian Russia Business Association, Vancouver Chapter. She is a director of Khot Infrastructure Holdings Ltd., a CSE listed infrastructure company, and a former director of NioCorp Development Inc., a TSX listed mining company. Chutter was recognized with a 2011 Business in Vancouver “Top 40 Under 40” achievement award.
Mitchell Smith—President and CEO
Mitchell Smith is an accomplished executive and business development professional with deep experience and proven success developing and executing on corporate strategies, marketing relationships and maximizing business opportunities for long-term engagement and strategic relationships. Smith has held increasingly senior capital market positions through his involvement with various mining groups including Global Cobalt Corp, International Barytex Resources and Petaquilla Copper Ltd. Smith was an early adopter to the battery space recognizing the proliferation and mainstream appetite for handheld smart devices, mobiles phones and EVs and the critical role the metals associated with the market would play. He has negotiated and structured off-take agreements for cobalt material and built relationships with Chinese battery manufacturer intermediaries and facilitated commerce by arranging joint ventures, marketing and engineering and procurement construction contracts.
Paul Sarjeant, P. Geo —VP Projects and Director
Mr. Sarjeant has extensive exploration, project evaluation and acquisition experience both in Canada and internationally and has developed a solid background in company management through various executive management positions with several publicly traded junior resource companies. He began his career with Echo Bay Mines Ltd. as a project geologist and was later appointed Senior Geologist, International Exploration Group, responsible for project evaluation outside of North America, including precious and base metals projects in South America, East Africa, South East Asia, Russia, Mongolia, Australia, New Zealand and Europe. Mr. Sarjeant holds a B.Sc. (Hons) Geological Sciences from Queen’s University.
James Gilbert has 20+ years of mining and metals investment, financing and transaction expertise, acquired in advisory, executive leadership and governance roles in both publicly-listed and private companies. His experience includes the structuring, negotiation and closing of base and precious metals project financing transactions, for single and multi-sponsor projects totaling billions of dollars, as well as the underlying joint venture arrangements among project sponsors – including strategic partners and offtakers. He has also executed corporate and asset level mergers and acquisition transactions involving mining companies and projects in North America, Latin America, Europe and Africa. Gilbert has held senior level positions with First Point Minerals Corp., Minera S.A, Gerald Metals Inc. and Rothschild’s mining and metals investment banking group.
Chris Berry is a well-known writer, speaker, and analyst with a focus on energy metals supply chains, specializing in lithium, cobalt, and graphite. He is the co-author of a newsletter focused on discovery called The Disruptive Discoveries Journal. He was a member of a group, which co-founded The Discovery Investing Scoreboard, a program designed to use crowd sourced information to rank equities of various market capitalizations. Berry spent 15 years working across various roles in sales and brokerage on Wall Street before devoting his efforts towards macroeconomic and natural resource analysis. He holds an MBA in Finance with an international focus from Fordham University, and a BA in International Studies from The Virginia Military Institute.
Wei Qian, New Tigers Consulting —Partner
New Tigers Consulting Limited and Wei Qian have excellent Chinese battery market sector relationships and have negotiated and executed offtake and financial arrangements for various resource focused groups. Wei Qian works with a strong network of battery metals companies and professionals in Beijing, Greater Shanghai area, Shenzhen, Australia, Canada, Ireland and the USA. Since 1997, he has provided international trade, business and market strategy has built a reputation for outstanding results across a range of services specially tailored to foreign investment and company formation in China.
Jon Hykawy, PhD (Physics), and Tom Chudnovsky, Stormcrow Capital —Partners
Stormcrow Capital is a Toronto based research, consulting, and capital markets firm, which focuses heavily on niche industrial materials that are critical in energy and technology applications. The principals at Stormcrow bring deep technical and market expertise in lithium, cobalt, graphite, tin, and other markets. As former senior members of various investment banking institutions, the principals also bring a strong professional, client and strategic network, which will be critical in helping Global Energy Metals achieve its long term objectives. Jon Hykawy has 15+ years of capital markets experience as Senior Analyst or Head of Research at independent Toronto investment banks, Chalk River Nuclear Laboratory of AECL and the Sudbury Neutrino Observatory. Tom Chudnovsky has 10 years of Investment Banking, Institutional Sales, and Institutional Agency Trading experience. His past capital markets experience include being VP, Investment Banking at Byron Capital Markets, VP, Institutional Equity Sales at Byron Capital Markets, Institutional Equity Trader at Blackmont Capital and Institutional Equity Trader at Clarus Securities Inc.
Gaston Reymenants — Director
Gaston Reymenants has held a distinguished career in mining, smelting, refining and metal trading spans over forty years, during which, he was also responsible for the financing of several off-take projects in Australia, China and the Americas. He has served over 20 years with Falconbridge International in various managerial positions and was part of the joint venture with Norilsk Kombinat. Reymenants was the managing director of Kola International Murmansk, and held director and/or senior managerial positions with several companies with cobalt assets including Baja Mining, Polymet Mining and KCM. His wealth of knowledge in the cobalt and industrial metals sectors will prove an excellent resource to Global Energy Metals.
Peter Reynolds has been engaged by EBRD to carry out reviews of EBRD’s investments for several projects in Mongolia, Central Asia and Russia and was previously the EBRD’s nominated Director on the Board of IMHL. Reynolds holds professional designations with the Australasian Institute of Mining and Metallurgy, Canadian Institute of Mining and the Australian Institute of Company Directors. He has over 45 years’ experience in the minerals industry, with high-level experience at various mines including being formerly Manager of Operations Planning & Mine Projects/Manager Mine Business Improvement for BHP Billiton at Olympic Dam, Managing Director of ASX listed Marlborough Resources, Director of ASX listed Outback Metals and manager of several of Normandy Mining’s operations.
Ray Castelli was appointed CEO of Weatherhaven, one of the world’s leading manufacturers of redeploy able camps and shelter systems, in January 2008. Weatherhaven has grown to become a key supplier to the Canadian, US, Australian and NATO armed forces, numerous resource exploration companies as well as the United Nations and other disaster and humanitarian relief agencies. Castelli was co-founder and Senior Vice President of Quadrem, a Dallas-based global supply chain and e-procurement company, serving 19 of the world’s largest natural resource companies, including Rio Tinto, BHP Billiton, Alcan and Inco. His role was to build the global organization and product set for this e-business pioneer. Castelli joined Alcan in 1995 following business school in Europe. He was promoted to Alcan’s Montreal headquarters in 1997 as Director of Strategic Planning.