Global Energy Metals Corporation revealed that it has struck a transaction implementation agreement with Kingsrose Mining Limited and Scandinavian Resource Holdings Private Limited (SRH) for Kingsrose to make a staged investment into the brownfield Råna nickel-copper-cobalt project in Norway.
The Vancouver-based critical mineral exploration company highlighted the formation of a Norwegian joint venture company (JV) for the development and operation of the project.
According to the firm, the underexplored Råna project has proven potential for discovery of massive sulphide nickel-copper-cobalt mineralization by using modern deposit models and exploration methods. Moreover, it is located 37 kilometres (km) by road from the ice-free, deep-water port of Narvik in Norway.
The project includes the past producing, underground Bruvann mine within a contiguous exploration licence holding of 25 square kilometres. The Bruvann deposit included a small but high-grade 1% to 5% nickel sulphide core, indicating that the intrusion generated high tenor nickel sulphide mineralization.
In a statement, Global Energy CEO Mitchell Smith said: “We are very excited by this development and the significance it has for validating the strategic interest we hold in the Råna project. This agreement provides an opportunity to significantly grow our shareholder’s value through the sole funded and rapid advancement of the Råna project by our new partner Kingsrose Mining.”
“Additionally, we benefit from being aligned with a formidable team."
'Exciting' complement to Nordic portfolio, Kingrose says
Meanwhile, Fabian Baker, who is a managing director at Kingrose, noted that Råna is an “exciting” project which complements Kingsrose’s critical metals portfolio in the Nordics.
“Syn-orogenic mafic-ultramafic intrusions analogous to Råna host some of the highest-grade deposits globally, such as Nova-Bollinger and Kabanga,” added Baker. “Mineralisation at the Bruvann deposit provides proof of concept that the system is fertile and capable of producing high tenor magmatic nickel sulphide.”
Baker said the transaction is testament to the company’s M&A strategy in a market where high-quality nickel sulphide projects are difficult to come by.
“Nickel is essential in the electrification required to achieve a low carbon future and Europe needs to secure a sustainable domestic supply,” he added.
Transaction implementation agreement
The transaction implementation agreement provides for the establishment of a new Norwegian JV company and for Kingsrose to offset expenditure on the project as consideration for shares in the JV company.
Kingsrose has paid a pre-completion deposit of A$25,000 to SRH, additionally, Kingsrose will make payments in cash and Kingsrose shares to SRH on earn-in milestones as described here.
The completion of the transaction will occur in four stages, with each completion and payment and/or issuance of consideration subject to satisfaction of certain milestones on the terms set out in the schedule.
The project is subject to three net smelter royalty deeds of 1% payable by the JV company to GEMC, Electric Royalties Corp., and Chincherinchee.
Investors can learn more about the project's exploration potential and work program here.
Contact the author Uttara Choudhury at uttara@proactiveinvestors.com
Follow her on Twitter: @UttaraProactive