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Global Cobalt names SpinCo as Global Energy Metals Corporation

Published: 15:54 03 Jun 2015 BST

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Global Energy Metals Corporation will focus on M&A and Project Development in battery metals projects and will gain the rights and all associated technical data for the Idaho based Iron Creek property and the Ontario based Werner Lake property

Global Cobalt (CVE:GCO) (OTCBB:GLBCF) has named its proposed SpinCo as Global Energy Metals Corporation, reflecting the company’s international scope and its involvement with metals essential to the battery and energy sectors.

Global Energy Metals Corporation will be based on Global Cobalt's Werner Lake property (the "Ontario Property") and the Iron Creek property (the "Idaho Property") along with all associated technical data.

Global Energy Metals Corporation will focus on M&A and Project Development in battery metals projects and will gain the rights and all associated technical data for the Idaho based Iron Creek property and the Ontario based Werner Lake property. Global Cobalt will continue its attention on the development of the Karakul and the Altai Satellite projects in Russia.

"We are convinced that the spin out and new organizational structure is the correct strategy, one which will enhance shareholder value by providing a sharper strategic focus for both companies moving forward.  The reorganization will unlock value and enable us to accelerate the expansion of our North American projects in Global Energy Metals Corp. while providing shareholders exposure to Karakul and the Altai Satellites that will remain with Global Cobalt,” said Global Cobalt’s president and CEO, Erin Chutter.

Global Cobalt has confirmed the schedule for the spin-out procedures with voting to take place at the Annual General Special Meeting on July 10th, 2015 and July 20th, 2015, the expected Effective Date and record date for Global Cobalt shareholders to receive Global Energy Metals shares on a 1:1 basis to their Global Cobalt holdings.

In 2014, Global Cobalt acquired the Iron Creek cobalt property in Idaho to gain a foothold in the famed Idaho Cobalt Belt as some investors had expressed concerns about its significant Russian exposure. As a result, it has reached out to bring in new projects, while continuing to maintain Karakul.

The spinoff should please those investors worried about perceived Russian risks to focus on the Werner Lake and Iron Creek projects in northwestern Ontario and Idaho respectively.

There was concern in 2014 that the company would have difficulties accessing project funding due to the geopolitical environment in Russia and weak capital market. Global Cobalt has continued to work with Chinese suppliers to complete technical and economic assessments at Karakul.

The Company expects to list Global Energy Corporation, which will continue to be managed by Global Cobalt’s current team, on the Toronto Venture Exchange (TSXV) while the Russian focused Global Cobalt will maintain its listing on the TSXV.

Global Cobalt will, as a condition of closing the Transaction, acquire a significant interest in a qualifying mineral property that meets the Venture Exchange’s initial listing requirements for a Tier II mining issuer and obtain a NI 43-101 compliant technical report thereon should Karakul not meet these requirements.

Global Cobalt has advised that its reorganization plan is conditional on the approval of final documentation by the its Board of Directors, approval of the strategic reorganization by the TSX Venture Exchange, approval of shareholders of Global Cobalt, and approval of the Supreme Court of British Columbia, among other aspects.

Global Cobalt has focused on becoming a consolidator in the cobalt market, prioritizing development funding at the project level, not just at the corporate level, to minimize shareholder dilution while rebuilding value.

Global Cobalt’s shares soared 16.7% in Toronto today.

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