Canada’s Global Energy Metals Corporation has fully acquired three cobalt projects from Hammer Metals in a move they say made it a leader in cobalt exploration and development in the Mount Isa area.
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Last month Global Energy Metals entered a binding agreement with Hammer Metals under which it will fully acquire the Millennium cobalt project, as well as the neighboring Mount Dorothy and Cobalt Ridge projects, the company announced.
GEMC said that would give them a district-scale cobalt opportunity making it the leading cobalt explorer and developer in the region.
Mitchell Smith, president and CEO of GEMC said the combination created one of the largest and most exciting exploration cobalt packages in Australia.
“Spurred by the recent drilling success and confidence in adding to the already significant cobalt tonnage at Millennium, we are pleased to announce this acquisition which furthers our long-term growth and value building strategy,” Mr Smith said.
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“With this acquisition, we continue to consolidate multi-million tonne cobalt assets and maximise cobalt leverage for our shareholders.
“Upon completion, we plan to recommence exploration and expansion of the project with the intent to commission a current resource estimate for the projects as well as identify new opportunities in the cobalt rich district.”
In exchange for the balance of Millennium that it does not already own, as well as Mount Dorothy and Cobalt Ridge, GEMC will issue Hammer Metals shares equal to 19.9 percent of its issued share capital – 20 percent of the shares will be released on issuance, with an additional 40 percent released every six months until 12 months after the date of issuance.
Hammer Metals will continue to operate Millennium for at least the first year of the agreement, with that role reviewed and renewed annually.
Hammer Metals CEO Alex Hewlett said they would receive an operator’s fee of 10 percent of expenditure and they would help GEMC identify and acquire additional cobalt assets in the Mount Isa region.
“We are pleased to have the opportunity to be invested in such a dynamic and focused cobalt explorer and developer while retaining exposure to longer term value creation that the Millennium and Mount Isa Projects will offer,” Mr Hewlett said.
Millennium is an advanced-staged cobalt project with a large defined zone of cobalt-copper mineralization. A resource estimate completed in late 2016 shows 3.1 million tonnes of inferred resources grading 0.14 percent cobalt, 0.34 percent copper and 0.12 grams per tonne gold.
A Hammer resource estimate outlined a mineralised zone over a strike length of approximately 1.5 kilometers.
Additional mapping, soil geochemistry and rock sampling has identified an additional 1.5 kilometers of anomalous cobalt-copper mineralisation in geological analogues that occur along a potential strike extension in the northern half of the tenement package. This area has not been tested with any drilling.