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Global Energy Metals closes second tranche of its non-brokered private placement for total gross proceeds of $230,000

Published: 11:40 14 May 2021 EDT

Canadian dollars
Combined with the closing of the first tranche of the private placement, Global Energy Metals raised a total of C$1,100,000 in gross proceeds

Global Energy Metals Corporation (CVE:GEMC) (OTCMKTS:GBLEF) | (FRA:5GE1) has announced the closing of the second tranche of its non-brokered private placement for total gross proceeds of $230,000.

Combined with the closing of the first tranche of the private placement, Global Energy Metals raised a total of C$1,100,000 in gross proceeds.  

In a statement, Mitchell Smith, Global Energy Metals president and CEO commented: “Closing this oversubscribed private placement has placed Global Energy Metals in a strong position to push forward with aggressive exploration programs in Nevada and Idaho, two of the most prospective mining jurisdictions in the United States."

"We look forward to continuing our bold approach to value creation as we pursue high-grade battery metal discoveries while demand for secure supply of these critical raw materials accelerates in the global shift towards a low-carbon economy,” he added.

READ: Global Energy Metals says Monument Peak Project results confirm significant copper, silver and gold mineralization

The company sold 920,000 units in respect of the closing of the second tranche. In total for the offering, it sold 4,400,00 units at a price of $0.25 per unit, with each unit consisting of one common share of the company and one transferable common share purchase warrant, where each warrant entitles the holder to purchase one common share within two years of each respective tranche closing date at a price of $0.30 each, subject to acceleration.

Global Energy Metals said the net proceeds of the offering will be used for general working capital and business development initiatives, acquisition of a 50% interest in copper-silver-gold and copper, nickel, cobalt, PGE properties in Idaho, USA and Quebec, Canada, as well as for exploration drilling activities at its Nevada, USA projects.  

Closing of the second tranche is subject to final TSX Venture Exchange approval. The common shares and warrants issued in connection with the second tranche are subject to a four-month and a day hold period.

The company said it will pay finders' fees in connection with the closing of the second tranche in the amount of $8,000 plus 32,000 broker warrants, where each broker warrant entitles the holder to purchase one common share within one year from the tranche closing date at $0.30 per common share, subject to acceleration.

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

The company recognizes that the proliferation and growth of the electrified economy in the coming decades is underpinned by the availability of battery metals, including cobalt, nickel, copper, lithium and other raw materials. To be part of the solution and respond to this electrification movement, Global Energy has taken a ‘consolidate, partner and invest’ approach and in doing so have assembled and are advancing a portfolio of strategically significant investments in battery metal resources.

As demonstrated with our current copper, nickel and cobalt projects in Canada, Australia, Norway and the United States, we’re investing-in, exploring and developing prospective, scaleable assets in established mining and processing jurisdictions in close proximity to end-use markets. We’re targeting projects with low logistics and processing risks, so that they can be fast tracked to enter the supply chain in this cycle.   We’re also collaborating with industry peers to strengthen our exposure to these critical commodities and the associated technologies required for a cleaner future.

Contact the author at jon.hopkins@proactiveinvestors.com

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