Global Energy Metals Corp (CSE:GEMC) Wednesday gave further details on its deal to buy two high-grade cobalt projects in Nevada, announced yesterday.
It is set to acquire an 80% interest in the Lovelock Cobalt mine and the Treasure Box project - which are 150km from Tesla's (NASDAQ:TSLA) giant Gigafactory.
Mitchell Smith, president and chief executive of the group, told Proactive's Steve Darling, that for shareholders, the deal represented a way to get more "investment exposure" into cobalt, one of 35 metals designated "critical" by the US government.
"With groups like Tesla 150km away from us, the electric vehicle (EV) growth globally is only increasing, and the demand on batteries is strengthening..," he said.
The past producing Lovelock mine consists of 70 unpatented lode claims in the Cottonwood Canyon area and totals around 1,400 acres (567 hectares).
It was discovered by George Lovelock and Charles Bell about 1880.
The mine operated from 1883 to 1890 to the 100 foot level, reporting 500 tons of cobalt and nickel mineralized material shipped to England for processing.
The average of the 200 tons shipped in 1886 averaged 14% cobalt and 12% nickel.
No further production from the Lovelock Mine is known for well over a century.
Meanwhile, GEMC noted that Treasure Box hosted mine workings from limited copper production, which went in the early 20th century.
A reverse circulation (RC) hole drilled at the project by Utah International in 1976 returned 1.55% copper over 12.2 metres from a depth of between 85 and 125 feet (25.9 to 38.1 metres), and the hole was stopped in chalcopyrite mineralization.
The core Treasure Box claims were held continuously for over 20 years by a private company but were relinquished in September last year, leading to their acquisition by Nevada Sunrise, with whom GEMC struck the deal announced yesterday.
The Nevada assets are drill ready and have the required permits for an exploration program.
In order to exercise the option, GEMC must follow a number of conditions. It will issue to Nevada Sunrise shares worth US$200,000 at a deemed price per share equal to the greater of: C$0.15; and, also: the volume weighted average of the closing price of the company's shares for the 20 trading days immediately before executing the definitive agreement.