Global Cobalt Corp. (TSXV:GCO) CEO Erin Chutter talks about the proposed spin-out named Global Energy Metals Corporation and says, “this is a really interesting opportunity for investors right now who are current Global Cobalt shareholders, or who become Global Cobalt shareholders within the next 3 or 4 weeks. They will actually receive shares in both companies which is an enormous opportunity for an investor interested in the energy metals space.”
Global Cobalt Corp. (TSXV:GCO) President, Erin Chutter, spoke to the Investing News Network at the 2015 Canadian Investor Conference, about the Company’s proposed spin-out named Global Energy Metals Corporation. Global Cobalt Corp. announced its plans for a spin-out company in April 2015, and stated that the spin-our company will focus on M&A and project development in battery metals projects, as well as the Werner Lake and Iron Creek projects in North America. Meanwhile, Global Cobalt will continue to hold agreements associated with Karakul and the Altai Satellite projects in Russia.
Ms. Chutter explained, “The new Global Cobalt, which will be focused on the development of the Karakul Cobalt Project in the Altai Cobalt Belt will continue towards the same path that it’s on right now. There’s a Chinese engineering group that’s working with us on the feasibility study and we’re in the process of initiating on the metallurgical works for that project. It’s a really substantial cobalt project located in a region that is very close to China, which is one of the key cobalt markets. At the same time, we recognize that there’s some issues around investing in Russia currently, and we wanted to really extract the value from our North American projects into a new listed vehicle, which will Global Energy Metals. That company will start with our two North American assets, which are Warner Lake and Iron Creek. We’re also on a path right now looking for other cobalt and energy metals projects that we can bring into the company, be they in North America, Australia or elsewhere. We feel really strongly that energy metals – cobalt, lithium, graphite, vanadium, even tungsten – are projects that are of high interest to end users and buyers of material, and we want to be the consolidator of those projects and the suppliers of those materials to those companies.”
In 2015, one of the biggest catalysts investors should watch out for will be the upcoming shareholder meeting where shareholders will vote on the split between the 2 companies. Ms. Chutter says, ”Shareholders who are shareholders of Global Cobalt prior to that meeting will actually receive shares in both companies – both Global Cobalt and Global Energy Metals. So this is a really interesting opportunity for investors right now who are current Global Cobalt shareholders, or who become Global Cobalt shareholders within the next 3 or 4 weeks. They will actually receive shares in both companies which is an enormous opportunity for an investor interested in the energy metals space.”