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Global Energy Metals Corp. announces High-Tech Metals’ acquisition of Werner Lake project after raising $4.72M on ASX listing

Global Energy Metals Corp (TSX-V:GEMC) told investors that associate company High-Tech Metals Limited has completed the acquisition of the Werner Lake copper-cobalt project in Ontario after raising A$4.718 million and closing its initial public offering (IPO) with its admission to the Australian Securities Exchange under the trading symbol ‘HTM’.

The Vancouver-based critical mineral exploration company said High-Tech paid A$700,000 for Werner Lake, including A$50,000 in cash and the balance in shares. Following the IPO, it now holds 7.6% in High-Tech.

Funds raised by High-Tech will be used to advance exploration of the Werner Lake project, identify additional opportunities to grow the company, and for general corporate and working capital purposes, Global Energy added.

READ: Global Energy Metals partners with Kingsrose Mining which will spend up to $15M to advance the Rana project in Norway

“We are very pleased to close on this transaction with High-Tech Metals and see the Werner Lake project with a group focused on advancing it and exposing its potential at such a pivotal time when Canada is positioning to be a powerhouse in the supply of technology enabling metals essential to an electrified future,” Global Energy CEO Mitchell Smith said in a statement.

“This transaction exemplifies Global Energy’s business model of identifying, acquiring and developing quality projects, to further advance the assets and monetize them through substantial equity positions in our partners,” Smith added. “The A$4.718 million raised by High-Tech for Werner Lake reiterates the strength of our project portfolio and highlights the unrealized value the market currently holds for Global Energy and the opportunity it presents for new and existing shareholders at today’s valuation.”

Highlights of the transaction

  • HTM acquired the Werner Lake cobalt project from Global Energy (70%) and Marquee Resources Limited (30%);
  • A$50,000 cash and 2,500,000 shares of High-Tech were received by GEMC upon closing of the transaction making Global Energy a 7.6% shareholder of High-Tech;
  • High-Tech is now listed on the ASX under trading symbol HTM having raised A$4.718M on its IPO;
  • Indicated mineralization remains open at depth and along strike with the potential for undiscovered high-grade zones;
  • Substantial exploration has been committed to by High-Tech as they work to unlock the high-grade cobalt and copper potential of the Werner Lake property.

“The world needs more high-quality cobalt and High-Tech is committed to begin work to realize the potential of the Werner Lake Cobalt Project in a sustainable and responsible manner to ensure strong outcomes for all stakeholders,” High-Tech Metals executive director Sonu Cheema said. “Having completed the IPO, High-Tech is in a unique position to advance exploration on its flagship project focused on EV metals in a tier-1 jurisdiction.”

Exploration upside and work program

Noting that Ontario is one of the safest mining jurisdictions in the world, Global Energy said the planned technical exploration program for the project will aim to review the existing exploration and geological data, evaluate drill targets that weren’t previously drilled and establish new drill targets .

It said High-Tech Metals seeks to further establish new drill targets outside of the existing orebody by utilizing electromagnetic techniques. The planned drilling program over the drill targets deemed to provide the best opportunities for mineralization is to be undertaken, with drilling to provide material for more advanced metallurgical test-work.

Global Energy said High-Tech Metals has an experienced board and management with extensive understanding of the project and relationships with key stakeholders within the region that have actively worked on the project and will help progress forward plans.

Werner Lake project

The company noted that the Werner Lake project is located near the Ontario-Manitoba border in the Kenora Mining District. The Werner Lake Geological Belt hosts numerous cobalt-copper and base metal showings, deposits and past producing mines. The two largest cobalt deposits defined to date are the Werner Lake Minesite Deposit and the West Cobalt Deposit.

The area has seen extensive exploration and development work since the original discovery of cobalt in 1921. The Werner Lake cobalt mine produced cobalt ore in the 1930s and 1940s from the “Old Mine Site” deposit area and with the discovery of the main ore area at the West Cobalt Deposit, was taken to production decision in the late 1990s.

At the time, infrastructure was put in place, including a four season road, mill buildings, and tailings settling area, Global Energy said.

Decline ramp, drifts and raises of over 258 meters were driven into the heart of the deposit. Mineralization remains open at depth and along strike with the potential for undiscovered high grade zones. Metallurgical studies have shown that excellent cobalt recoveries can be yielded from a standard flotation mill process followed by a low-pressure oxidative hydrometallurgical leach (net recovery 88%), to produce a cobalt carbonate end product.

Global Energy Metals offers investment exposure to the growing rechargeable battery and electric vehicle (EV) market by building a diversified global portfolio of exploration and growth-stage battery mineral assets.

As demonstrated by its current copper, nickel and cobalt projects in Canada, Australia, Norway and the US, the company is investing-in, exploring and developing prospective, scalable assets in established mining and processing jurisdictions in close proximity to end-use markets.

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