leadf
logo-loader
viewGlobal Energy Metals Corp

Global Energy Metals, Marquee Resources talk JV terms at Werner Lake after initial deal expires

A deal that would've seen Marquee take a 70% interest in the project fell through

Cobalt
The Vancouver-based company said its primary focus remains the advancement of its flagship Millennium Cobalt-Copper-Gold project in Queensland, Australia

Global Energy Metals Corporation (CVE:GEMC) (OTCPINK:GBLEF) and Marquee Resources Ltd (ASX:MQR) are discussing terms of a joint-venture deal for the Werner Lake Cobalt Project in Ontario after the companies let a deal lapse that would’ve seen Marquee take a 70% interest. 

Back in February 2018, the parties finalized a strategic option agreement that would charge Australia-based Marquee AUD$1 million for a 30% interest in the project in year one and an additional AUD$1.5 million to jump to a 70% interest on or before year two. 

Marquee met the 30% threshold but due to a shortfall in project expenditures did not earn its potential 70% stake, GEMC said. The 24-month period to do so has since expired.

READ: Global Energy Metals unveils deal to take accelerated ownership stake in its Nevada projects

The companies have agreed to let the agreement lapse due to market conditions, GEMC said. For now, GEMC owns 70% and Marquee owns 30%. According to GEMC, both parties would prefer for one party to take sole ownership of the project, but acceptable terms have not been reached. 

"We value the partnership with Marquee and recognize the extensive project expenditures they made in advancing the Werner Lake project over the past two years,” GEMC CEO Mitchell Smith said in a statement. “The work they completed further confirmed the potential for significant exploration upside at the cobalt and copper-rich project having identified new targets open for exploration. We leave the door open for further cooperation with Marquee or other groups that see the opportunity for the advancement of the past-producing primary cobalt project."

Marquee extensively tested the exploration potential at Werner Lake over the past two years. The company confirmed high-grade cobalt mineralisation intersected in numerous drill holes during previous diamond drilling programs and provided additional structural and geotechnical data for ongoing project development studies.

The Phase 1 exploration campaign was focused primarily on narrow spaced drilling, which is designed to increase the existing resource, which GEMC said remains open in all directions. 

Phase 2 drilling was meant to extend mineralization beneath the current resource area and test potential down dip and down plunge extensions. In addition, five drill holes for metallurgical purposes (452 meters) were completed to create a composite bulk sample of approximately 150 kilograms that were sent for metallurgical testing at SGS Laboratories Canada.

The Vancouver-based company said its primary focus remains the advancement of its flagship Millennium Cobalt-Copper-Gold project in Queensland, Australia and Nevada-based Lovelock and Treasure Box battery mineral projects.

Contact Andrew Kessel at [email protected] 

Follow him on Twitter @andrew_kessel

Quick facts: Global Energy Metals Corp

Price: 0.2 CAD

TSX-V:GEMC
Market: TSX-V
Market Cap: $3.3 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of Global Energy Metals Corp named herein, including the promotion by the Company of Global Energy Metals Corp in any Content on the Site, the...

FOR OUR FULL DISCLAIMER CLICK HERE

Global Energy Metals remains focussed on advancing their assets in Nevada...

Global Energy Metals (CVE: GEMC- OTCQB: GBLEF) President and CEO Mitchell Smith joined Steve Darling from Proactive Vancouver to share details about the moves made by the company over the last few months that has seen them triple their market cap. Smith also told Proactive what he sees as the...

2 weeks, 2 days ago

3 min read