Global Energy Metals Corp (TSX-V:GEMC) earlier this week announced a non-binding letter of intent to acquire just under 20% of NeoLithicaa’s Peace River lithium project in Alberta.
The project spans 380,000 hectares and includes 50 contiguous lithium brine licenses issued by the Alberta government. NeoLithicaa completed a NI 43-101 technical report, which confirmed a 10 million-ton lithium carbonate equivalent (LCE) resource with 70mg/l lithium concentration.
CEO Mitchell Smith elaborated on the deal with Proactive, explaining how it aligns with the company’s strategy to expand exposure to critical minerals, including copper, cobalt, nickel, and uranium.
Proactive: Welcome back inside our Proactive newsroom. Joining me now is Mitchell Smith, CEO of Global Energy Metals. Mitchell, great to see you again. How are you?
Mitchell Smith: Doing very well, Steve. Thanks for having me on today.
Exciting news from the company—you’ve signed a non-binding letter of intent to acquire an ownership stake just under 20% in a project from NeoLithicaa. This moves you into the lithium space, which aligns with the type of operations you like to invest in. Tell me about the reasoning behind this deal.
Yes, this fits with our strategy of securing exposure to critical minerals essential for the electrified future. Lithium has become a key material, not just for battery metals but also for national security considerations. This partnership with NeoLithicaa is a great opportunity for us.
This investment includes a net smelter royalty and involves the Peace River lithium project. Has much work been done there already?
NeoLithicaa has held the property for a couple of years and has secured the land in the Leduc Formation, about 500km northwest of Edmonton, near Grand Prairie. They completed a National Instrument 43-101 report about a year ago, which identified a 10 million-ton lithium carbonate equivalent (LCE) resource at 70mg/l. This is a significant lithium resource, especially as interest in lithium brine projects in Alberta grows.
The property is quite large—about 380,000 hectares, with 50 contiguous lithium brine licenses issued by the government of Alberta. What needs to happen before this becomes a binding agreement?
We are working with NeoLithicaa on next steps for project development, which includes shipping material for analysis. The key is to demonstrate the project's ability to produce battery-grade lithium. NeoLithicaa, as the operator, has a set of objectives for development over the next year, and we’re excited about the progress. The lithium sector in Alberta is gaining significant attention.
This deal also broadens Global Energy Metals’ exposure. You’re involved in various critical minerals, including copper, cobalt, nickel, and uranium. Is the goal to maintain a diversified portfolio?
Exactly. It’s about not having all our eggs in one basket. We want to provide our shareholders with exposure across the entire critical minerals sector. This lithium investment, along with our existing interests in copper, cobalt, nickel, and uranium, strengthens our position. We also hold equities and royalties, giving us diversified exposure to this space.
Quotes have been lightly edited for style and clarity