The agreement sees Australian firm Canadian Co27 Pty be acquired fully by Marquee Resources Limited and then have the rights to earn either a 30% or a 70% interest in the Werner Lake Cobalt project in Ontario.
The project has had a busy history since it was last operated in the 1940s as a high-grade source of cobalt.
A work program, including diamond drilling to upgrade resource categories, as well as additional metallurgical work and underground chip sampling has been recommended. The mineralised zones remain open in all directions.
"We are very pleased to be advancing this important Canadian cobalt project with our newest partners," said Mitchell Smith, chief executive of Global Energy Metals.
"Their strong funding and operating team was an important consideration in partnering with them to ensure that the Werner Lake project advances and builds value for shareholders under the current cobalt market conditions.”
To enter the agreement, Global Energy Metals will receive a non-refundable deposit of A$25,000 and a further A$175,000 and such number of Marquee shares, having a total value of A$100,000.
In addition, if an encouraging pre-feasibility study according to commercially reasonable standards is obtained, with respect to any part of the property, the optionee shall cause Marquee to pay GEMC A$150,000.
To maintain the option granted, and to exercise the option, the optionee must incur expenditures of A$1,000,000 to earn a 30% interest in the property and a further A$1,500,000 (for a total of A$2,500,000) to earn a 70% interest.
The Marquee team includes Charles Thomas, a well known corporate financiere and capital markets leader in Australia.
He said: "Werner Lake is one of the key cobalt resources in Canada and this partnership will ensure that it advances as quickly as possible. We will move quickly to activate the development program."
Canmine Resources, before filing for bankrupcy, completed a significant amount of work, including; helicopter-borne geophysics, diamond drilling over numerous campaigns, and several resource calculations
It also completed a 10,000 tonne bulk sample and metallurgical bench test milling and chemical analysis on the mineralised material.
Canmine Resources also completed several preliminary feasibility studies and economic modeling and were in the process of completing a definitive feasibility study.
Additional work was completed in 2009-2010 by Puget Ventures and all this work formed the basis for the recent NI 43-101 resource report from Global Energy in September this year.
That resource relates to the historic underground workings at the old mine site, now referred to as the mine site deposit and the west cobalt deposit.
Highlights included a higher confidence indicated resource of 57,900 tonnes at 0.51% cobalt and an inferred resource of 6,300 tonnes at 0.48% cobalt at a 0.25% cut-off grade.
GEMC shares rocketed over 30% to stand at C$0.17 each.