Global Energy Metals Corp (TSX-V:GEMC) said it has completed the previously-announced sale of a 1% net smelter return (NSR) royalty on the Rana nickel project in Norway, which includes the past-producing Bruvann nickel mine, to Electric Royalties Ltd (TSX-V:ELEC, OTC:ELECF).
The royalty is jointly held by Global Energy Metals and Scandinavian Resource Holdings and consists of four exploration licenses totaling 25 square kilometers.
“Råna is just one example of monetizing our current portfolio, as demonstrated by the creation and sale of this royalty to Electric Royalties and also by the proposed non-dilutive project advancement by incoming partner Metals One plc while we maintain a carried interest and 1% NSR of our own,” Global Energy Metals CEO Mitchell Smith said in a statement.
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“In addition, through increased activity directed towards our strong, multi-jurisdictional asset base by our various partners as well as from our own internal efforts, we plan to advance our high-quality portfolio and further grow the company rapidly,” Smith added.
Global Energy Metals holds a strategic 10% project level interest in the Råna project.
Metals One plc, meanwhile, has entered into an agreement with Scandinavian Resource Holdings to acquire a 90% interest in Råna.
Electric Royalties will issue two million of its common shares plus pay C$100,000 in cash to Global Energy Metals and Scandinavian Resource Holdings in proportion to project ownership.
As well, Global Energy Metals reported the completion of Phase 1 drilling at the Lovelock Mine project in Nevada.
The company said it believes Lovelock displays potential for near-surface cobalt, nickel and copper mineralisation and could become a significant discovery opportunity in the highly-prospective Stillwater Iron oxide copper gold (IOCG) region.
Global Energy Metals is investing-in, exploring and developing prospective, scaleable assets in established mining and processing jurisdictions in close proximity to end-use markets.
It has current copper, nickel and cobalt projects in Canada, Australia, Norway, and the United States.
Contact Sean at sean@proactiveinvestors.com