Global Energy Metals Corp (TSX-V:GEMC) reported that Aussie-listed Metal Bank Ltd (ASX:MBK) (MBK) has exercised its option to earn up to an 80% interest in stages in the company's Millennium copper, cobalt and gold project in Queensland, Australia.
The two companies have now inked a formal earn-in and joint venture agreement and the first stage of the earn-in has begun, during which, MBK will sole fund exploration expenditures of $1 million over the next year to earn a 51% stake.
Global Energy said that MBK had developed a three-phase work program for 2022, which includes up to 5,500 metres (m) of drilling planned for 2022 to confirm the exploration target and a resource expansion and development program.
"We are pleased to have entered into a partnership with a group that shares our position that Millennium is a project with great potential for the discovery of a globally significant battery metals resource at a time when ramping up and sourcing supply is so critical to the electrification movement," Mitchell Smith, the CEO of Global Energy said in a statement.
READ: Global Energy Metals making good progress with its Phase I drill program at Lovelock battery metals project in Nevada
"I am very pleased to say that we have achieved this with Metal Bank, an organization with the financial and technical capability to grow this project to its full potential," he added.
Metal Bank’s chair Inés Scotland commented: "Our exploration success at the Millennium Project has enabled a significant Exploration Target to be estimated for the project and our earn-in work program is aimed at converting that target into JORC Resources, as well as following up on the significant cobalt results from our drilling earlier this year. We welcome GEMC as a MBK shareholder and look forward to continuing to work with them to advance the Millennium project."
The Millennium project holds an inferred 2012 JORC resource of 5.9 million tonnes (Mt) at 1.08% copper-equivalent. The asset spans five granted mining leases with significant potential for expansion, which are all close to processing and excellent infrastructure in the Mount Isa region.
The company said the MBK exploration work program consists of:
- Phase 1 - 1,800-2000m RC/DD Exploration Target confirmation of scale drilling program. The aim of this program will be to test open Southern and Central Area shoots at depth, the shallow Northern Area extension and infill, and the adjacent Pilgrim/Fountain Range/Quamby Fault Zone resource potential.
- Phase 2 – 2,000m RC drilling extension program to Infill resource gaps, extend near-surface existing resources, first pass testing of peripheral targets and Phase 1 follow-up.
- Phase 3 - 1500m RC Resource infill, economic assessment and follow-up work from Phase 1 and 2.
As part of the stage 1 earn-in, MBK will issue 31.25 million shares to GEMC based on an issue price of $0.008, being the 30 day VWAP as at close on December 10, 2021.
At stage 2, MBK will sole fund exploration expenditure of C$2 million to earn a further 29% interest in the joint venture, taking its interest to 80%.
The third stage of the venture will see each party contribute its percentage share of expenditure, split 80:20 with MBK having 80%.
The Mt. Isa Mineral province is recognized as a world-class mining region, with more than a quarter of the world’s lead and zinc reserves, 5% of the world’s silver resources, and 1.5% of the world’s copper resources.
Global Energy Metals Corp (TSX-V:GEMC) is focused on the growing rechargeable battery and electric vehicle market by building a diversified global portfolio of exploration and growth-stage battery mineral assets.
Contact the author at giles@proactiveinvestors.com