Global Energy Metals (GEMC) has entered into a binding agreement with Hammer Metals to acquire the balance of the interest in the Millennium Cobalt Project as well as the Mt. Dorothy Cobalt Project and the Cobalt Ridge Project, to become a 100 per cent holder of both the Millennium Property and the Mt. Isa Projects.
This accelerated acquisition of cobalt rich assets positions GEMC as the region’s leading cobalt explorer/developer building a district-scale cobalt opportunity in Queensland Australia’s Mt. Isa prolific mining jurisdiction.
Mitchell Smith, President & CEO of Global Energy Metals believes that this combination creates one of the largest and most exciting exploration cobalt packages in Australia.
Global Energy Metals recently announced a series of consistent long and wide intercept high-grade cobalt results from assays from the phase one work program at the Millennium Property, an advanced exploration project with a JORC (2012) resource. The objective of the 10-hole, 1,141 metre drilling campaign was to test the up-dip continuity at the Millennium North deposit and confirm historical estimates of cobalt mineralisation reported in 2016 by operating partner Hammer Metals. Drilling results correlate well with the previous deeper drilling with the further delineation of wide zones of cobalt, copper and gold mineralisation nearer to surface. The drilling campaign is now complete.
“Spurred by the recent drilling success and confidence in adding to the already significant cobalt tonnage at Millennium, we are pleased to announce this acquisition which furthers our long-term growth and value-building strategy. With this acquisition, we continue to consolidate multi-million tonne cobalt assets and maximise cobalt leverage for our shareholders,” said Mr Smith.
“Upon completion, we plan to recommence exploration and expansion of the project with the intent to commission a current resource estimate for the projects as well as identify new opportunities in the cobalt rich district.”
According to Alex Hewlett, Managing Director of Hammer Metals, the initial work program that has concluded at Millennium only just begun to highlight the potential for the project to be part of a much larger regional cobalt play across the Mt. Isa region.
“Hammer is pleased to have the opportunity to be invested in such a dynamic and focused cobalt explorer and developer while retaining exposure to longer term value creation that the Millennium and Mt. Isa Projects will offer,” stated Mr Hewlett.
The Payment Shares will be subject to resale restrictions of four months plus one day in accordance with applicable securities legislation and will also be subject to a voluntary pooling agreement pursuant to which the shares will be released as to 20 per cent on issuance and 40 per cent every six months thereafter until 12 months after the date of issuance.
Hammer will remain as operator of the property until at least the first anniversary of the date of the Definitive Agreement, with such engagement to be reviewed and renewed on an annual basis thereafter. Hammer shall receive an operator’s fee of 10 per cent of the expenditures carried out on the Property.
Hammer will also co-operate with GEMC with a view to identifying and acquiring additional cobalt assets in the Mt. Isa region of Queensland, Australia fulfilling its mandate of creating a diversified and viable supply of material to offset current reliance from DRC sourced cobalt.