Global Energy Metals Announces Offtake Agreement for Werner Lake Cobalt Project With Chinese Battery Cathode Manufacturer
Global Energy Metals Corporation (TSXV:GEMC)(“Global Energy Metals”, the “Company” and/or “GEMC”) is pleased to report that partner Marquee Resources Limited (“Marquee”) has entered into a non-binding Memorandum of Understanding (“MoU”) regarding a cobalt-copper offtake agreement for the Werner Lake Cobalt project (“Werner Lake” and/or the “Project”) with Zhejiang Meidu Haichuang Lithium Battery Technology Co. (“China Hitrans”), a subsidiary of Shanghai Stock Exchange listed Meidu Energy Co. Ltd. (Code 600175).
Global Energy Metals Corporation (TSXV:GEMC)(“Global Energy Metals”, the “Company” and/or “GEMC”) is pleased to report that partner Marquee Resources Limited (“Marquee”) has entered into a non-binding Memorandum of Understanding (“MoU”) regarding a cobalt-copper offtake agreement for the Werner Lake Cobalt project (“Werner Lake” and/or the “Project”) with Zhejiang Meidu Haichuang Lithium Battery Technology Co. (“China Hitrans”), a subsidiary of Shanghai Stock Exchange listed Meidu Energy Co. Ltd. (Code 600175). Global Energy Metals currently owns a 70% interest in the Project.
Non-binding Cobalt-Copper Offtake Agreement for Marquee’s interest in the Werner Lake Sulphide Cobalt project signed with Zhejiang Meidu Haichuang Lithium Battery Technology Co. Ltd.
China Hitrans is one of the most significant Chinese operating enterprises involved in the manufacturing of battery cathode materials.
China Hitrans is ranked highly in the Chinese cathode material manufacturing community.
Negotiations underway for a Formal Offtake agreement with China Hitrans by Marquee.
Marquee will provide China Hitrans with a metallurgical sample for independent testing within the next 3 months and China Hitrans will work together with Marquee to design the best products to be the potential feed of China Hitrans.
Currently Marquee has an interest in 30% of the Werner Lake deposit and as such this proposed agreement would only apply to this interest.
Further Werner Lake drill results expected shortly.
China Hitrans is a high-tech enterprise that develops, produces and sells ternary cathode materials and ternary precursors of lithium battery. Further information on China Hitrans can be found at the end of this announcement.
Preparations are underway for Marquee to provide China Hitrans with a metallurgical product sample for independent testing within the next 3 months. China Hitrans will conduct lab scale research on the best products Marquee can produce out of its cobalt projects. During this time Marquee will commence negotiations to enter into a formal binding offtake agreement for the sale and purchase of any Werner Lake product.
This agreement follows a previous announcement confirming that the stage one expenditure commitment of $1,000,000 has been reached by Marquee and as such, they have now met the requirements to earn their initial 30% interest in the Project.
The multi-phase Werner Lake exploration program is part of a $2.5 million commitment to advance the project and is being solely funded by Marquee for their earn-in of up to 70% interest in the Project.
On September 20th, Global Energy Metals announced a $500,000 Private Placement with net proceeds being used for the completion of the recently announced cobalt project acquistions, for marketing initiatives as well as general working capital requirements.
The Private Placement will consist of the issuance of a maximum of 6,666,667 units (the “Units”) at a subscription price of CAD$0.075 per Unit. Each Unit will be comprised of one common share of the Company (a “Share”) and one transferable common share purchase warrant (a “Warrant”). Each Warrant will be exercisable to purchase an additional Share of the Company for a period of 12 months from the closing date (“Closing Date”) at a price of CAD$0.15 subject to acceleration.
All securities issued in connection with the Private Placement will be subject to a statutory hold period of 4 months plus a day from the Closing Date in accordance with applicable securities legislation. Warrants are subject to an acceleration clause whereby if on any 10 consecutive Trading Days occurring after four months and one day has elapsed from the Closing Date, the daily volume weighted average trading price of the common shares of the Company is at least $0.20 per share, the Company may accelerate the expiry date of the Warrants to the 30th day after the date on which the Company gives notice to the Subscriber in accordance with the Warrant of such acceleration. Finder’s fees may be paid in connection with this Offering. Closing of the Private Placement is subject to the approval of the TSXV.
Mr. Paul Sarjeant, P. Geo., the Company’s VP Projects and Director, is the qualified person for this release as defined by National Instrument 43-101 – Standards of Disclosure for Mineral Projects and has reviewed and verified the technical information contained herein.
Zhejiang Meidu Haichuang Lithium Battery Technology Co., Ltd. (“China Hitrans”)
China Hitrans was established in December 2015 and is a holding subsidiary of Meidu Energy Co. Ltd. (stock code 600175). The company is located in Shangyu economic and technological development zone, Hangzhou Bay, Zhejiang Province, the south wing of the Yangtze River Delta, the most economically developed area in China.
The company occupies an area of 300 acres and has more than 250 employees. In 2017, it achieved an operating income of 470 million yuan, and successfully succeeded in the top 100 industrial enterprises of the economic and technological development zone. The sales volume of the products jumped to the top 10 in China, and won the two awards of “Top 10 Brands of Power Lithium Battery Cathode Materials in China” and “2017 Most Investment Value Award of Lithium Battery in China”.
As an important part of Meidu Energy Co. Ltd.’s layout of new energy industry chain, the company has formed a complete industrial chain of “upstream raw materials – nickel-cobalt-manganese ternary precursor – nickel-cobalt- manganese ternary cathode materials – downstream power lithium battery”. It integrates raw material supply, research and development, production and sales.
The company has established its own research institutes. It has received more than 20 patents and granted patents. While enhancing its own R&D capabilities, it has established a long-term strategic partnership with Zhejiang University, Zhejiang University of Technology, and Ningbo Institute of Materials of the Chinese Academy of Sciences based on domestic and international market demand. The company has developed a series of high-quality products, and has formed a multi-level product structure led by lithium battery ternary precursor (nickel-cobalt-manganese precursor, nickel-cobalt-aluminum precursor, nickel-cobalt precursor), lithium battery ternary cathode material (Lithium nickel cobalt manganese oxide, Lithium nickel cobalt aluminum oxide). The products include polycrystalline and single crystal NCM111, NCM523, NCM622, NCM811, NCA and other models. The product range covers electric vehicles, power tools, high-end digital products, energy storage and other fields.
The company has won a number of strategic customers by the high-tech content and stable quality of the product, and good service. With the continuous expansion of the application fields of new energy and new materials, the company has adapted to the market demand and continuously expanded its investment scale.
(TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
Global Energy Metals is focused on offering security of supply of cobalt, a critical material to the growing rechargeable battery market, by building a diversified global portfolio of cobalt assets including project stakes, projects and other supply sources. GEMC anticipates growing its business by acquiring project stakes in battery metals related projects with key strategic partners. Global Energy Metals currently owns and is advancing the Werner Lake Cobalt Mine in Ontario, Canada and has entered into an agreement to earn-in to the Millennium Cobalt Project in Mt. Isa, Australia.
For Further Information:
Global Energy Metals Corporation
#1501-128 West Pender Street
Vancouver, BC, V6B 1R8
t. + 1 (604) 688-4219 extensions 236/237
Cautionary Statement on Forward-Looking Information:
Certain information in this release may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with regulatory approvals and timelines. Although Global Energy Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management’s beliefs, estimates or opinions, or other factors, should change. For more information on Global Energy and the risks and challenges of their businesses, investors should review the filings that are available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
We seek safe harbour.