Global Energy Metals Corp (CVE:GEMC) has struck what it called a "transformational" growth opportunity with the acquisition of an option from Hammer Metals for the Millenium cobalt-copper project in Queensland, Australia.
The property covers five separate mining leases with an existing JORC compliant mineral resource defined by drilling from a 2016 programme.
Complements existing footprint ...
"The option on the Millennium Cobalt project in Australia complements our existing cobalt footprint in Canada ..," said Mitchell Smith, GEMC's president and chief executive.
"We believe Millennium is an exceptional opportunity, with significant near-term upside potential in both project economics and expansion of the existing resources.
"Hammer is guided by an established and experienced technical team that has the proven ability to quickly advance this cobalt project.”
Meanwhile Hammer chief Alex Hewlett, said: "Hammer is very pleased to have GEMC as a strategic partner to develop Millennium."
Inferred resources of 3.1mln tonnes
The 2016 report showed an inferred resource of 3.1 million tonnes at 0.14% Cobalt, 0.34% copper and 0.12g/t (grams per ton) gold, using a copper equivalent cutoff of 1%.
The site is near infrastructure and preliminary hydrometallurgical studies have shown potential to recover saleable cobalt and copper concentrates.
READ: Global Energy Metals' maiden Werner Lake resource estimate positions it as leading project developer
Millennium is the firm 's first acquisition to complement its wholly-owned Canadian primary cobalt project.
Under the terms of the deal, before the third year of signing a definitive option agreement, GEMC must spend a minimum of C$2.5mln on project exploration and development work.
That comprises C$500,000 within 6 months to take a 25% interest, C$1mln, within 18 months for 65% cumulative interest and C$1mln within three years for a 75% stake.
GEMC will also pay Hammer a total of C$200,000 in cash in two equal payments of $100,000, the first upon signing the definitive agreement and the second on the six month anniversary of the first payment.
Shares in Toronto shot up over 18% to C$0.13