Global Energy Metals Corp (TSX-V:GEMC) announced that its joint venture partner Kingsrose Mining Limited has met the conditions for the second phase of their investment agreement in the Råna nickel-copper-cobalt project in Norway.
The company said that with this milestone, Kingsrose has earned a 51% stake in the project by spending $3 million on expenditures.
Kingsrose recently completed a drill program at Råna. A total of 706 meters was drilled over three drill holes, with assay results pending.
“We are excited by this significant milestone and look forward to continued work with Kingsrose under this strategic collaboration with the expectation of significantly enhancing the understanding of the Råna project, bringing forward its full potential,” GEMC CEO Mitchell Smith said in a statement.
“GEMC’s exploration portfolio of targets, projects and partners is designed such that the success of the company is driven by the proven earn-in partner funding model. Through our partnership with Kingsrose Mining we are doing just that and since partnering with them have benefited from a wealth of knowledge and confidence of not only confirming the existing scale of the Råna project but in advancing the exploration and expanding the footprint of the mineralization.”
Further, Kingsrose has informed GEMC that it intends to proceed to earn the third milestone interest, equal to a 65% stake in the Råna project by incurring $4 million in expenditures at the project within the next two years.
It can ultimately earn up to an 80% interest in the project by spending $15 million in cumulative project expenditures.
GEMC has a 10% stake in Narvik Nikel, a Norwegian holding company that holds a 100% interest in the Råna project. It also holds a 1% net smelter return royalty on the project.