An ownership interest in the Nevada-based Lovelock and Treasure Box (LTB) battery minerals project is in an accelerated phase for battery metals company Global Energy Metals Corporation (GEMC) as a result of the negotiation and entering into of an agreement with junior explorer Nevada Sunrise Gold and Primus Resources.
The agreement provides GEMC with a controlling interest over the LTB project earlier than planned in a previous earn-in agreement, empowering GEMC to explore and develop the asset in a timely and expedited manner, but without the project expenditure outlay and strict timelines originally contemplated.
This agreement replaces and supersedes the original option agreement made on January 15, 2019. Consequently, Nevada Sunrise granted to GEMC an option to purchase an undivided 85% interest in the LTB projects.
The main terms of the accelerated ownership agreement stipulate that once satisfactory completion of certain closing conditions is done, GEMC will be enabled to purchase an 85% interest in the LTB projects, with Nevada Sunrise retaining a 15%, subject to a 2% net smelter royalty in favour of Primus provided for in the underlying option agreement between Primus and Nevada Sunrise.
The closing conditions include a payment of $35 000 by GEMC to Primus, as well as issuing to Primus, by GEMC, one-million common shares and issuing to Nevada Sunrise, by GEMC, 750 000 common shares, both at a share price of $0.10 a share.
Following the successful completion of the ownership agreement, a joint venture between GEMC and Nevada Sunrise will be formed to further explore and develop the LTB projects.
GEMC president and CEO Mitchell Smith says an accelerated ownership stake in the Nevada-based projects provides GEMC and its shareholders with high-potential, growth-stage exploration projects in a well-established mining district.
In addition, he notes that it also provides the foundation to “break free” from the over-reliance for critical material imports on China and other competing nations and instead develop a domestic supply of battery metals.