Global Energy Metals Corp (TSX-V:GEMC) (GEMC) said it has reached an agreement to divest an 80% interest in the Mount Dorothy and Cobalt Ridge projects, two copper-cobalt-gold exploration projects located in Mount Isa, Queensland, Australia.
The agreement was made with Mulga Minerals Pty Ltd and Mt Dockerell Mining Pty Ltd (MDM), both subsidiaries of Hammer Metals Limited.
GEMC acquired the Mount Isa projects along with the Millennium project from Hammer. The Millennium project is currently being advanced through a joint venture partnership with Metal Bank Limited.
The company noted that the Mount Isa projects offer significant potential as high-grade, under-explored assets that are strategically located near a processing solution.
The company expressed confidence in the ability of Mulga to maximize the potential of the properties, leveraging Hammer's technical experience and knowledge of the local jurisdiction.
As part of the agreement, Mulga and MDM will grant Element a 1% net smelter return (NSR) on each of the Mount Isa projects. They will also be responsible for all costs associated with project advancement until the completion of a c.
In a statement, Mitchell Smith, GEMC president and CEO commented: “The partial divestiture of the Mount Isa projects is consistent with the company’s strategy of actively managing and streamlining our property portfolio through a partnership model while benefitting from the collaboration with well-funded, technically experienced peer groups.
"In addition to maintaining a sizeable investment exposure in these two early-stage exploration properties with known showings of strategic elements, the company also benefits by having created two new royalties on the properties of which we are free-carried on any cash expenditure until the time of completion of a prefeasibility study.”
Hammer Metals holds a strategic tenement position covering approximately 2,200 square kilometers within the Mount Isa mining district. The company also has ownership interests in various deposits, including Kalman, Overlander North and South, Elaine, and Jubilee.
Daniel Thomas, managing director of Hammer commented: “We are pleased to be transacting with Global Energy Metals again and re-take majority ownership in these prospective claims that we believe deserve future exploration attention and that will further complement an already impressive project inventory. We are confident in the opportunity the Mount Isa region presents for minerals that are critical for Australia’s future and are determined to participate in securing the raw materials needed for batteries and new energy technologies through projects like Mt. Dorothy and Cobalt Ridge.”
GEMC aims to provide investment exposure to the growing rechargeable battery and electric vehicle market by building a diversified global portfolio of battery mineral assets at different stages of exploration and growth.
Contact the author at jon.hopkins@proactiveinvestors.com