- Global Energy Metals (GEMC) has signed a letter of intent with Electric Resources and Scandinavian Resource Holdings
- The companies have agreed to create a new one per cent net smelter royalty (NSR) on four exploration licenses in the Råna project
- Under the agreement, Global Energy will receive cash and share equity in Electric Royalties
- Global Energy Metals offers investment exposure to the growing rechargeable battery and electric vehicle market
- Shares in Global Energy Metals Corp. (GEMC) are up 5.66 per cent, trading at $0.28 per share
Global Energy Metals (GEMC) has signed a letter of intent with Electric Resources and Scandinavian Resource Holdings.
The companies have agreed to create a new one per cent net smelter royalty (NSR) on four exploration licenses in the Råna project.
The Råna project is jointly owned by Global Energy and Scandinavian Resource Holdings and is located on the Ofoten Fjord in northern Norway. It includes the past-producing Bruvann nickel mine and possesses a large historical drill database demonstrating its mine exploration potential.
Under the agreement, Global Energy will receive cash and share equity in Electric Royalties, increasing its exposure to the company and its growing portfolio of metal projects.
Mitchell Smith, CEO of Global Energy Metals, commented,
“We see Electric as the perfect partner to strengthen awareness about the Rana Project and attract further investment to advance this important class-1 sulphide nickel project.”
Electric Royalties is creating the 1% NSR on the Råna Project for a total consideration of 2,000,000 common shares and $100,000 cash payable to Global Energy and Scandinavian Resource Holdings.
“We are very pleased to add Rana to our royalty portfolio as it represents our first exposure to nickel,” said Electric Royalties CEO Brendan Yurik.
“We believe,” he added, “that Rana has excellent potential to help supply the nickel required to transition the world away from fossil fuels and toward a decarbonized global economy.”
The mine was closed in 2002 due to low nickel prices, but both parties believe that the mine remains a promising source of nickel-based on recent data.
Global Energy Metals offers investors exposure to the growing rechargeable battery and electric vehicle market by building a diversified global portfolio of exploration and growth-stage battery mineral assets.
Shares in Global Energy Metals Corp. (GEMC) are up 5.66 per cent, trading at $0.28 per share as of 10:01 am ET.