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Global Energy Metals Announces Royalty Sale on Strategic Battery Metal Portfolio for Meaningful Stake in Electric Royalties
(via TheNewswire) Vancouver, BC - TheNewswire - July 23, 2020 - Global En...
About this update from Global Energy Metals Corp
[{"type":"text","content":"Global Energy Metals Announces Royalty Sale on Strategic Battery Metal Portfolio for Meaningful Stake in Electric Royalties(via TheNewswire)\n \n \nVancouver, BC - TheNewswire - July 23, 2020 - Global Energy Metals Corporation (TSXV:GEMC) | (OTCQB:GBLEF) | (FSE:5GE1) (\"Global Energy Metals\", the \"Company\" and/or \"GEMC\") is pleased to announce that as part of the Company's portfolio optimization strategy it has entered into a definitive purchase agreement (the \"Purchase Agreement\") to sell a portfolio of royalty interests to Electric Royalties Ltd. (TSXV:ELEC) (\"Electric Royalties\" and/or \"ERL\") on the Millennium Cobalt Project, the Mt. Dorothy Cobalt Project and the Cobalt Ridge Project (the \"Royalty Portfolio\") located in Queensland, Australia. \n\n\n \nPresident & CEO, Mitchell Smith commented:\n\n\n \n\"The closing of this royalty transaction and major endorsement by this new electric-metals royalty company underpins another step in the company's strategy to create value from its strategic battery mineral portfolio.\"\n\n\n \n\"Through the meaningful stake in Electric Royalties, Global Energy will have added exposure to the strong and diversified energy mineral asset royalty portfolio that ERL holds in lithium, vanadium, manganese, cobalt, and graphite, as well as the added benefit of like-minded corporate objectives and growth mandate in a strong critical minerals and clean energy price environment.\"\n\n\n \nInitial Royalty\n\n\n \nPursuant to the terms of the agreement announced on February 27, 2020, in consideration for a 0.5% gross metal royalty (the \"Royalty\") on Millennium and the Mount Isa Projects, Electric Royalties will issue to Global Energy Metals 1.15 million shares (the \"Consideration Shares\") in Electric Royalties and make a CAD $150,000 cash payment. The Consideration shares will be escrowed and have a staged vesting period over eighteen months.\n\n\n \nAdditional Royalties Option\n\n\n \nElectric Royalties, has also been granted a call option (\"First Option\"), exercisable at any time, for a period of two years from the Effective Date, to acquire a 0.5% royalty on the Net Smelter Returns from the Millennium Cobalt Project (the \"Millennium NSR\"), by paying C$500,000 to Global, payable up to 25% in shares of ERL, at ERL's election.\n\n\n \nUpon exercise of the First Option, ERL will ha...