Global Energy Metals Corporation (TSXV:GEMC) announces a non-brokered private placement of up to $1 million (the “Private Placement”) to fund the rapid advancement of the Millennium Cobalt Project in Mt. Isa, Australia.
Mitchell Smith, President & CEO commented: “This funding will allow GEMC to quickly add significant value to this important cobalt project in a key mining district.”
The proceeds from the Private Placement will be used for resource expansion and exploration drilling at the Company’s recently announced Millennium Cobalt project in Mt. Isa, Australia and be used for general corporate and working capital requirements.
The main aims of the program have been structured to maximise drill meterage and increase the resource tonnage and confidence of the JORC resource categorisation from inferred to indicated. The Company believes that the project can be grown substantially and this work program will form the basis for further advancement.
“We look forward to working with Hammer Metals and its technical team to continue to advance the Millennium Cobalt project,” said Smith. “We anticipate an aggressive exploration program commencing immediately following the closing of this offering.”
The Private Placement will consist of units (“Units”) to be issued at a price of $0.12 per Unit with each Unit consisting of one common share and one transferable common share purchase warrant (a “Warrant”). Each Warrant will be exercisable by the holder into one common share of the Company at a price of $0.20 per share for a period of 12 months.
The Warrants will contain an acceleration provision, whereby in the event the daily VWAP of the common shares of GEMC is at least CAD $0.30 per share for 10 consecutive trading days, GEMC will have the right to accelerate the expiry date of the Warrants to the date which is 30 days after notice is given to the holders of the warrants of the accelerated expiry date and a news release to that effect is given.
All securities issued pursuant to this Private Placement will be subject to a four month hold period. The Private Placement is subject to acceptance by the TSX Venture Exchange (the “Exchange”) and the Company may pay a finders’ fee in respect of certain subscribers under the Private Placement in accordance with policies of the Exchange.
Global Energy Metals Corporation (TSXV:GEMC | 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.
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.