Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) has announced a $550,000 investment by two New York-based institutional investment management firms.
The company said it will also amend the terms of its previously announced financing to increase the size of the offering to now allow for up to gross proceeds of a minimum $750,000 and up to $1 million, consisting of up to 4 million units on the same terms as announced on March 2.
GEMC said this strategic investment, along with existing and new investor participation, will provide for it to execute on a number of corporate building initiatives -- including an accelerated exploration program at the high-grade nickel-cobalt-copper Lovelock Mine project in Nevada.
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More specifically, the company said the net proceeds of the upsized offering will be used for general working capital and business development initiatives, acquisition of a 50% interest in copper-silver and copper, nickel, and cobalt PGE properties in Idaho and Quebec, as well as for exploration drilling activities at its Nevada projects.
The company said the first phase of the inaugural drilling program at the Lovelock Mine calls for up to eight drill holes totaling 1,400 meters (m) and will initially target areas of Induced Polarization (IP), high-chargeability and geophysical anomalies identified in an independent interpretation.
The first pass drilling program at the Lovelock Mine Project is intended to confirm intersections of cobalt-nickel-copper bearing vein that correlates with historical underground mining and mapped superficial cobalt-nickel-copper occurrences. GEMC said it anticipates that the drill program will demonstrate broader mineralization across the width and depth of the occurrence, which remains open in all directions.
Lovelock history
The Lovelock Mine Project is located in the Cottonwood Canyon area of the Stillwater Range in Nevada and is comprised of 81 unpatented lode claims totaling about 642 hectares (1,586 acres), including the past-producing, high-grade cobalt-nickel Lovelock Mine.
According to US government annual reports, GEMC said that the Lovelock Mine saw limited production of nickel, copper, and cobalt beginning in 1883.
The primary cobalt mineral was identified as “cobaltite” and the general average of the 200 tons shipped in 1886 averaged 14% cobalt and 12% nickel. The mine operated from 1883 to 1890 to the 100-foot level, reporting 500 tons of cobalt and nickel mineralized material shipped to England for processing.
Further production from the Lovelock Mine was not known for well over a century, providing GEMC an excellent opportunity to unlock the potential value of the deposit through exploration work, including this inaugural drill program.
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