Global Energy Metals Invests in Lithium; Enters Agreement to Acquire Royalty and Option on Alberta-Based Lithium Brine Project
(TheNewswire)
Vancouver, BC - TheNewswire -
February 4, 2025 - Global Energy Metals Corporation (TSXV:GEMC | OTCQB:GBLEF | FSE:5GE1)
(“Global Energy Metals”, the “Company” and/or
“GEMC”), a multi-jurisdictional,
multi-commodity critical mineral exploration and development company
focused on growth-oriented metal projects supporting the global
transition to clean energy, is pleased to announce, subject to TSX
Venture Exchange approval, that it has entered into a non-binding
Letter of Intent (the “Agreement”) with NeoLithica Ltd. (“NeoLithica”) to acquire an eighteen month option toacquire a 19.9% interest and a 1% Net Smelter Return (“NSR”)royalty over NeoLithica’s Peace River Lithium Project (the“Project”).
NeoLithica is an emerging lithium resource development
company that plans toincorporate innovative direct lithium extraction (“DLE”) andrefining technologies to produce battery-grade lithium compounds insupport of Canada’s critical mineral supply chain. The Company isheadquartered in Calgary, Alberta.
HIGHLIGHTS:
The global push for decarbonisation has placed lithiumat the forefront of the clean energy transition with lithium brineprojects emerging as a promising solution to meet the growing demandfor battery-grade lithium while enhancing energy independence amidrising geopolitical uncertainties.
The lithium mining market is projected to grow from
$10.96B in 2024 to $29.5B by 2032,fuelled by a 13.18% CAGR during the forecast period.NeoLithica has assembled a largecontiguous mineral tenure position in Alberta’s Peace region thatfeatures well developed production infrastructure.
NeoLithica completed its National Instrument
43-101 (“NI 43-101”)
Technical Report, which includes aninferred mineral resource estimate of 10 million tonnes of lithiumcarbonate equivalent (LCE), at an average grade of 70.0 mg/L.On closing of the transaction, Global Energy will begranted an eighteen month option to acquire 19.9% in and a 1% NSRroyalty over NeoLithica’s Peace River Lithium Project.
In consideration for the NSR and the eighteen monthoption, GEMC will issue, subject to Exchange approval, two millionshares at a deemed price of CAD $0.05 per share to NeoLithica and payimmediately $10,000 in cash.
In order to exercise the option, GEMC will, by theeighteenth month, pay to NeoLithica $1.5M as a combination of cash andshares, as agreed to by both parties at that time, at a minimum deemedissue price.
NeoLithica will remain as operator of the Project andwill maintain and keep the Project in good standing.
Working with NeoLithica, Global Energy will furtherevaluate options for the project including the securing of a strategicoperational partner to apply their technical and jurisdictionalexpertise to advance this key North American lithium project andsolidifying the Project’s role in Canada's critical minerals supplychain.
Pursuant to the Agreement, Global EnergyMetals has secured an option to acquire (the “Option”) fromNeoLithica within a eighteen (18) month period a 19.9% interest in anda 1% NSR royalty over NeoLithica’s Peace River Lithium Project. TheProject is located in the Peace River region of northwest Alberta andfeatures 377,508 hectares (1,458 square miles) of prime lithium-brinehosted mineral licenses overlying several highly productivelithium-rich aquifers that stretch along a 165 kilometre fairway andhosts an inferred mineral resource estimate of 10 million tonnes oflithium carbonate equivalent (LCE), at an average grade of 70.0 mg/L.Please refer to theNI 43-101 compliant
resource estimate hosted on the NeoLithica
website.
Mitchell Smith, CEO& Director comments:
“The accelerated global shift towards cleanenergy solutions continues to shine a spotlight on sustainable andcost-effective mineral extraction methods, and lithium brine projectsare emerging as a promising solution to meet the growing demand forbattery-grade lithium while enhancing energy independence amid risinggeopolitical uncertainties.
Taking anon-operating interest option and royalty on a highly prospectivelithium brine asset offers excellent optionality against a realisticcurrent background of depressed lithium pricing and global costinflation. We see Peace River as an important Canadian project thathas the potential to be a strategic source of lithium as the globalsupply chain rebalances over time, driven by the growing criticalityof locally sourced, ethically produced lithium needed to support theenergy transition.
We look forward tothis collaboration with NeoLithica and are encouraged by the additionof a promising lithium asset to Global Energy’s existing project,equity and royalty portfolio that provides our shareholders investmentexposure to new energy metals critical to an electrifiedfuture.”
Barry Caplan,President of NeoLithica comments:
“Global energy will be a valuable partner and help evaluate optionsfor NeoLithica and work with us in securing a strategic operationalpartner to apply their technical and jurisdictional expertise toadvance this North American lithium project when demand for lithiumsurges, driven primarily by the electric vehicle revolution and thegrowing need for renewable energy storage systems.”
KEY TERMS OFACQUISITION
As consideration for the Acquisition, GEMC will securethe option my making an immediate non-refundable cash payment of CAD$10,000 to be used for testing of brine from the Project and, upon TSXVenture Exchange (the “TSXV”) approval (the “Effective Date”),issuing CAD $100,000 of common shares in the capital of GEMC (the"Payment Shares") at a deemed value of $0.05/share for atotal of 2,000,000 shares in GEMC.
If the Option remains unexercised on the twelve-monthanniversary of the Effective Date, NeoLithica is entitled to a cashpayment of CAD $100,000.
The option to acquire is exercisable at GEMC’selection on or before the eighteenth (18) month anniversary of theEffective Date, for additional consideration of CAD $250,000 cashpayment and, at GEMC’s discretion, CAD $1,250,000 in cash and/orcommon shares of GEMC at the greater of i) the 5-day volume weightedaverage price one business day prior to the date that the TSXVprovides approval of the exercising of the Option; or ii) at a deemedfloor value of $0.075/share.
The transaction contemplated above is a“Non-Arms’ Length” transaction in accordance with applicablesecurities legislation, as Mitchell Smith is a director of both GEMCand NeoLithica. Mr. Smith has declared his conflict to the boards ofboth companies, and abstained from voting on thetransaction.
The TSXV has in no way passed upon themerits of the proposed transaction and has neither approved nordisapproved the contents of this news release.
PROJECTOVERVIEW
The Peace River Project features thick,extensive, and highly-productive lithium-brine aquifers associatedwith carbonate reef buildups in the Leduc Formation of the DevonianWoodbend Group. Access to the Leduc Formation aquifer brine at thePeace River property will be undertaken by drilling and completingwells to pump the brine from depths of approximately 2,250 m. Once thelithium is extracted, the brine will be injected back down into anoverlying porous aquifer.
The Peace River Project consists of 50contiguous lithium-brine hosted licenses issued by the Alberta EnergyMinistry that overlie the thick Leduc Formation fringing reef, andoverlying Wabamun Formation that were deposited in a shallow inlandsea along the emergent Peace River Arch. All permits are held 100% byNeoLithica Ltd. and currently the Project is comprised of a total areaof 377,508 hectares (1,458 square miles).
The Wabamun Formation, that overlies theLeduc, is also a potential source of lithium-brine with similarchemistry as the Leduc and may be added to NeoLithica’s NI 43-101resource estimation in the near future.
NeoLithica’s permits lie on the eastern flank of thePeace River Arch, a prominent basement structure that controlled thelocation and massive growth of the porous brine-filled carbonate reefsduring the Devonian period.
The thick and widespread Woodbend reefs that fringe thePeace River Arch, and the underlying Beaverhill Lake platformcarbonates have produced large volumes of oil and gas, in addition tomassive amounts of formation water (brine). These stacked lithium-richaquifers reach up to 300 metres in thickness.
After separation of the produced oil and gas from theformation waters (brine), the lithium-voided brine is disposed of byre-injecting it back into an overlying formation, which avoidsdiluting the lithium concentration in the primary producingzones.
NeoLithica has conducted a detailed geologic studywithin its project area, which served as the foundation for itsNational Instrument
43-101 technical report.
Click Image To View Full Size
Figure 1. The Peace Region inAlberta is home to significant oil and gas production and welldeveloped infrastructure that can be leveraged to acceleratecommercial lithium development.
NeoLithica has developed a two-stagepre-commercialization plan designed to rapidly place the company onthe global stage as a sustainable producer of this critical electricmetal extracted from brine in Alberta’s oil and gasreservoirs.
The first stage of pre-commercial development wascompleted in 2023, and comprised resource definition and NI 43-101 compliance
reporting, refining the database of existingwell and pipeline infrastructure, expanding the company’s mineraltenure, environmental scoping and stakeholder consultations.
NeoLithica plans to commission a Preliminary EconomicAssessment (PEA) after conducting several demonstration pilots inearly 2025, and upgrade the extracted lithium concentrate to producebattery-grade lithium compounds to seed to potential globalbuyers.
The third stage of development will be focused ondrilling up to two brine wells in 2025 to perform reservoirengineering evaluations to determine the ultimate producibility of theWabamum, Leduc and Granite Walsh formations, and the injectivity ofthe overlying Belloy Formation. The wells will also provide the sourceof brine needed to conduct a pre-commercial demonstration pilot todetermine the most effective way to integrate its selected DLEplatform within an optimized brine production infrastructure. Afterthe scaled demonstration program is completed, NeoLithica will developits aquifer management plan and commission a Pre-feasibility Study(PFS).
The results of the above projectdevelopment, conducted by the team at NeoLithica, its technologypartners and industry experts, will de-risk the Peace River LithiumProject and lead to Final Investment Decision.
Global Energy is relying on theinformation provided by NeoLithica
Ltd.
QualifiedPerson
Mr. Paul Sarjeant, P. Geo., is thequalified person for this release as defined by National Instrument43-101 - Standards of Disclosure for Mineral Projects. He is ashareholder and Director of the Company.
For FurtherInformation:
Global Energy MetalsCorporation
#1501-128 West PenderStreet
Vancouver, BC, V6B 1R8
Email: info@globalenergymetals.com
t. + 1 (604) 688-4219
www.globalenergymetals.com
Twitter: @EnergyMetals | @USBatteryMetals | @ElementMinerals
Global
Energy Metals Corporation
(TSXV:GEMC |OTCQB:GBLEF | FSE:5GE1)
Global Energy MetalsCorp. offers investment exposure to the growing rechargeable batteryand electric vehicle market by building a diversified global portfolioof exploration and growth-stage battery mineral assets.
Global Energy Metalsrecognizes that the proliferation and growth of the electrifiedeconomy in the coming decades is underpinned by the availability ofbattery metals, including cobalt, nickel, copper, lithium and otherraw materials. To be part of the solution and respond to thiselectrification movement, Global Energy Metals has taken a‘consolidate, partner and invest’ approach and in doing so haveassembled and are advancing a portfolio of strategically significantinvestments in battery metal resources.
As demonstrated withthe Company’s current copper, nickel and cobalt projects in Canada,Australia, Norway and the United States, GEMC is investing-in,exploring and developing prospective, scaleable assets in establishedmining and processing jurisdictions in close proximity to end-usemarkets. Global Energy Metals is targeting projects with low logisticsand processing risks, so that they can be fast tracked to enter thesupply chain in this cycle. The Company is also collaborating withindustry peers to strengthen its exposure to these criticalcommodities and the associated technologies required for a cleanerfuture.
Securing exposure tothese critical minerals powering the eMobility revolution is agenerational investment opportunity. Global Energy Metals believesNow is the Time to be part of this electrification movement.
Cautionary Statement on Forward-Looking Information:
Certain informationin this release may constitute forward-looking statements underapplicable securities laws and necessarily involve risks associatedwith regulatory approvals and timelines. Although Global Energy Metalsbelieves the expectations expressed in such forward-looking statementsare based on reasonable assumptions, such statements are notguarantees of future performance and actual results or developmentsmay differ materially from those in the forward-looking statements.Except as required by law, the Company undertakes no obligation toupdate these forward-looking statements in the event that management’sbeliefs, estimates or opinions, or other factors, should change.
GEMC’s operationscould be significantly adversely affected by the effects of awidespread global outbreak of a contagious disease, including therecent outbreak of illness caused by COVID-19. It is not possible toaccurately predict the impact COVID-19 will have on operations and theability of others to meet their obligations, including uncertaintiesrelating to the ultimate geographic spread of the virus, the severityof the disease, the duration of the outbreak, and the length of traveland quarantine restrictions imposed by governments of affectedcountries. In addition, a significant outbreak of contagious diseasesin the human population could result in a widespread health crisisthat could adversely affect the economies and financial markets ofmany countries, resulting in an economic downturn that could furtheraffect operations and the ability to finance itsoperations.
For more informationon Global Energy and the risks and challenges of their businesses,investors should review the filings that are available atwww.sedar.com.
Neither TSX VentureExchange nor its Regulation Services Provider (as that term is definedin the policies of the TSX Venture Exchange) accepts responsibilityfor the adequacy or accuracy of this release.
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