Primary Energy Metals

Committed to Ethically and Responsibly Sourcing Battery Materials

This profile is part of a paid investor education campaign.*

Overview

Primary Energy Metals (CSE:PRIM) is a Canadian junior exploration company based in Vancouver, British Columbia. The company is in the business of acquiring, exploring and developing ethically sourced cobalt, copper, nickel and vanadium. They are also focused on sourcing green energy power minerals for battery production. Primary Energy Metals holds properties in British Columbia, Canada and has signed letters of intent (LOIs) and partnerships aimed at developing a presence in Spain.

The company is interested in cobalt due to the increasing demand for it in electric vehicle (EV) battery production. The Democratic Republic of Congo is where 55.4 percent of the world’s cobalt is produced, but there are elevated supply risks because of the unstable political environment. Most of the world’s cobalt is mined as a by-product and there are four widely distributed cobalt ore deposits that are not mining cobalt primarily, which is making it hard to keep up with the rising demand.

The company’s RD Cobalt property is located in northwestern British Columbia, approximately 65 kilometers north of the town of Smithers and a kilometer north of the village of Hazelton. Smithers is home to a branch of the Ministry of Energy and Mines, which provides support to mining companies in the area. The property is well situated and close to major roads and railways and has access to power. The Golden Wonder showing on the property has presented samples of 17.80 g/t gold, 0.53 percent cobalt and up to 4.5 percent copper.

Primary Energy Metals is interested in acquiring land in Spain due to the stable political climate, supportive government policies, the skilled workforce and the extensive infrastructure that’s already in place. The company has developed an interest in the Iberian Pyrite Belt, which includes volcanic massive sulfide deposits and is an integral mining area in Southern Europe. The company is primarily looking at vanadium and cobalt mines, however Spain is also known for containing rich mineral deposits of various materials.

Working to develop its presence in Spain, the company has entered into a partnership with EXCOMining, a Madrid-based exploration and production advisory company, to help in the evaluation and acquisition of properties in Spain. Primary Energy Metals followed this by signing an LOI for an option to acquire up to an 85 percent interest in two cobalt properties in Southern Spain and two vanadium properties in Central Spain.

Primary Energy Metals’ management team has over 15 years experience working in the mining industry. The company is significantly invested in the company, holding 20 percent of shares.

Company Highlights

  • Primary Energy Metals is committed to ethically sourcing battery materials.
  • High grade grab samples of gold at 17.80 g/t, 0.53 percent cobalt and up to 4.5 percent copper found at Golden Wonder showing on the RD Cobalt Property.
  • Diversified interests and commitment to bringing the best grade forward.
  • Mining friendly Spain offers a skilled workforce and established infrastructure system.
  • Business model includes the use of established infrastructure as opposed to increasing expenditures through new builds.
  • Experienced management team owns 20 percent of the company.

RD Cobalt Property, Canada

The RD Cobalt Property is in northwestern British Columbia, Canada, in the Hazelton region. The area lies at the north end of the Rocher Deboule Range, which is near the Bulky and Skeena Rivers. A number of paved and gravel roads, rail and power lines run adjacent to the northern edge of the property. The Lougheed Highway is part of the Trans-Canada Highway system and is approximately a kilometer away from the property. The western and northern ends of the property can be accessed by gravel roads and through ATV trails. However, the south-central area can only be accessed by helicopter due to the topography of the area.

The property is approximately a kilometer north of the village of Hazelton and New Hazelton and the town of Smithers is approximately 65 kilometers away and hosts a branch of the Ministry of Energy and Mines. The Smithers municipality, in conjunction with the Ministry of Energy and Mines, provide services for exploration and mining activities in the area, including access to helicopter, drilling, expediting and heavy equipment services.

Golden Wonder Showing

The Golden Wonder Showing is one of several zones containing anomalous gold, copper and cobalt. There is a gossanous outcrop that is several meters thick and with a potential of a strike length of approximately 400 meters. There area has reports of high grade grab samples of gold at 17.80 g/t, 0.53 percent cobalt and up to 4.5 percent copper. The project will begin drilling in the near future with the aim of further developing and exploring the property.

Spain Properties

Recently, Primary Energy Metals has entered the resource market in Spain. Spain contains the most diversified mining sectors and predominantly produces industrial minerals and stone. Spain also encompasses close to 90 percent of the Iberian Peninsula, which is considered to be the most mineralized zone in the European Union. The mining sector contributes 0.8 percent of Spain’s GDP and has the support of the federal and regional governments. Spain contains a skilled labor force, a well-developed infrastructure and is very open to foreign investment.

In recent press releases, Primary Energy Metals has entered a joint strategic relationship with EXCOMining, based in Madrid, Spain. The relationship is a strategic one that enables the evaluation and potential acquisition of battery mineral research permits. Primary Energy Metals has also signed a Letter of Intent (LOI) with Exco Mining SA who will acquire 85 percent interest in two exclusive cobalt, copper, nickel and manganese permits in Almeria and Granada in southern Spain and two vanadium permits in Badajoz, in central Spain.

Buran Project — Almeria, Southeast Spain

The 62,416-hectare Buran Project is located in southeastern Spain. The region is known for containing permo-triassic sandstone deposits containing copper and copper-lead. Some of the mines in the area were mined specifically for cobalt and nickel as these two elements were used in dyes for ceramics in the late 1800s. In the early 1900s, there was a demand for mineral resources in Europe, such as nickel, lead, iron and copper, but vanadium and molybdenum were rejected because of their low price.

Historically, the area contains plenty of small mines that contain lead, zinc, copper, manganese, iron, silver, strontium and barium. The mines have not been in use for over 30 years and were unable to produce more than 25,000 tonnes of ore concentrate due to market instability and poor mechanical development.

Lead and zinc have been found embedded in carbonated formations of the Trias, which is associated with limestone and dolomites and are formed in restrictive environments. There have been discoveries of enriched mineralization of several redox-sensitive elements (cobalt, nickel, silver, selenium, arsenic and mercury) on the property as well.

Beatrix Project — Granada, Spain

The 73,814 hectare Beatrix Project is located in the southern province of Granada, Spain and is located approximately 90 kilometers from the capital. The deposit is situated within a discordant deposit of cream-colored Triassic marbles. The project closely resembles the findings being found at the Buran project in Almeria and there have been discoveries of lead-zinc and copper-cobalt at the mine.

Odin-Altair Vanadium Project — Badajoz, Spain

The 130,000 hectare Odin-Altair vanadium project is located approximately 120 kilometers from Cordoba and approximately 160 kilometers from Seville. The Badajoz province is an unique region of Spain where the vanadium can be extracted at an industrial scale. During the first quarter of the 1900s, the production of vanadium was the highest in the world.

Historically, the extracted grades of vanadium, in the form of vanadium oxide, was four to five percent until it was concentrated by hand and would reach 12 percent. In comparison, the Maracas Mine in Brazil, a world class vanadium mine, extracts a grade of 1.34 percent vanadium oxide. Cobalt and vanadium have been found at this mine; however, findings of annabergite, azurite, calcite, chalcopyrite, cattierite, cobaltine, quartz, erythrin, heterogenite, pyrite and tirolite have also been cited.

Analysis of the project has indicated that there is a 5.9 percent cobalt content. There are dikes running in a northeast to southwest direction, which is associated with cerussite and a blend of calcite and iron oxides. The blending of calcite and iron oxides and cerussite produces vanadite, which is another form of vanadium. The mineralization is in a fracture zone filled with calcite where the contents of copper, nickel and cobalt vary considerably. The concentrates are then sent to the German, Gijon or Valencia porcelain factories to obtain the coveted “Prussian blue” color.

Management

Patrick CT Morris — CEO & Director

Patrick Morris is an entrepreneur and capital markets executive experienced in a number of industries including resource exploration, pharmaceutical cannabis, blockchain technologies, and finance.

With 15 years capital markets experience, raising funds for microcap companies and executing corporate development strategies, he has taken numerous companies public via IPO, RTO and CPC. He also co-created and co-produced Canada’s first nationally syndicated radio show about Growth Stock Opportunities, broadcast on fourteen of the top rated news talk stations across Canada.

Geoff Balderson — Director and CFO

Mr. Balderson is the President of Flow Capital Corp. and Harmony Corporate Services Ltd., private business consulting companies located in Vancouver, British Columbia. Mr. Balderson has been an officer and director of several TSX Venture Exchange listed companies over the past 12 years. Prior to that he was an investment advisor at Union Securities and Georgia Pacific Securities Corp.

Mr. Thomas W. Clarke, P.Geo. — Director

Will serve as an Independent Director of Primary Energy Metals Corp. Mr. Clarke is a professional geologist. From September 2010 to present, Mr. Clarke has served as a director of Weststar Resources Corp., a mineral exploration issuer listed on the TSXV. Mr. Clarke obtained a Bachelor of Science (Geography) from the University of Lethbridge, Alberta in 1997, a Bachelor of Science (Honours) Geology from the University of Witwatersrand, Johannesburg, South Africa in 2002 and a Master of Science (Geology) from the University of Witwatersrand in 2004. Mr. Clarke obtained his P.Geo. designation in 2013 from the Association of Professional Engineers & Geoscientists of British Columbia and his Pr.Sci.Nat. designation in 2007 from the South African Council for Natural & Scientific Professions. Mr. Clarke obtained his P.Geo. designation in 2014 from the Association of Professional Engineers & Geoscientists of Alberta and is currently gaining his P.Geo. designation from the Order des Geologues du Quebec.

John Michael Mackey — Director

Mr. Mackey received a Bachelor of Arts in International Studies and Political Science in 1961 from the UBC and a law degree from UBC in 1964. He was a practising lawyer and a member in good standing with the Law Society of British Columbia from 1965 to 1991. He was a director of the following two TSX-V companies: Vangold Resources Ltd. from January 2008 to December 2013 and Vanoil Resources Ltd. from January 2009 to February 2013.

Daniel Porras Sanchiz, GEO — Director Técnico – Chief Operations

Geologist specializing in mining and O&G exploration, focused in geophysics, hydrogeology, permitting and management, and environmental requirements for exploration. Knowledge environmental requirements by the Spanish law for mining and Oil and Gas exploration and exploitation in Spain. From 2012, was directly involved in the process of evaluating of mining projects including exploration planning and environmental analysis of projects. Also worked in some investigation permits for industrial rocks, and exploitation concessions (quarries). Mr Porras has a Bachelor’s degree in Geology from the University of Granada, belonging to the European Federation of Geologists, European Association of Geoscientist & Engineers (EAGE), and Oil Geophysics and Geologist Spanish Association (AGGEP), and further formation in HSE. He has also participated as a professor in the modules of geophysics in master’s degree courses at the University of Salamanca and practical courses at the Official College of Geologists of Andalusia.

Rafael López — Exploration Manager

Mr. Lopez is a geologist specializing in mining and oil & gas exploration, conventional and unconventional reservoirs, including geochemistry, paleogeography and sedimentary basin analysis. He is highly knowledgeable in the geology of the main sedimentary basins in Spain, including the regional and historic geology. His experience also includes isotopic geochemistry, geochronology, geological cartography, sampling surveys and general field work. From 2014 engaged with SAMCA Group, he was directly involved in the process of evaluating mining projects, analyzing their geological characteristics, mining planning, environmental analysis of projects, cost and profitability analysis and negotiation for the acquisition of assets or to carry out research projects. Founder of EXCO Mining selecting and development battery minerals projects in a joint venture with Primary Energy Metals in Spain focused in Cobalt, Vanadium and Cooper. Mr. Lopez has a Bachelors degree in Geology from the University of Madrid, specialized in petrology, geochemistry and energetic resources. Advanced Studies Diploma in doctorate programs of “Geologic Processes from the University of Madrid. Since 2004, Mr. Lopez has authored many industry related publications in Spain. Also he served at the Vulcanology Investigation Center (CNRS) in Clermont – Ferrand (France).

 

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