Fueling the GEMC project pipeline of growth stage battery metals
If you are an investor looking for opportunities to participate in the green revolution you have many options to choose from. There are new ETFs popping up weekly that have a variety of themes from EVs, renewable energy, battery materials, and the list goes on….and on. Wherever you decide to start is entirely up to you, but for me, I don’t know that I want to try and pick which technology will rule the day. Personally, I’m not convinced that full battery electric vehicles will ultimately be the answer. I think some sort of fuel cell/battery hybrid vehicle will be the best answer for efficiency and utility. However, with all the momentum behind BEVs and charging stations, etc. I could be completely wrong, even if my thesis is accurate. So rather than try and make a bet on what technology ends up ruling the day, it seems like it would be prudent to take a step back and look at what materials are common to the majority of these technologies. That way it doesn’t matter if my Hybrid Theory (I had to throw in a reference to the debut album of one of my all-time favorite bands – Linkin Park) is valid or not, things like copper, cobalt, lithium, nickel, rare earths, tin and the like will definitely be part of the energy transition to a lower carbon footprint in whatever form it takes.
To that end, today we are going to look at an intriguing company that gives exposure to many of the commodities listed above plus some precious metals sprinkled in, over numerous projects located in safe mining jurisdictions all over the world. And all that with a market cap of just over $5 million. Global Energy Metals Corp. (TSXV: GEMC | OTCQB: GBLEF) (GEMC) has cobalt, copper and nickel projects in Canada, Australia, Norway and the United States. GEMC is investing in, exploring and developing prospective, scalable assets in established mining and processing jurisdictions in close proximity to end-use markets. GEMC is targeting projects with low logistics and processing risks, so that they can be fast tracked to enter the supply chain in this cycle. The Company is also collaborating with industry peers to strengthen its exposure to these critical commodities and the associated technologies required for a cleaner future.
GEMC currently boasts six projects in varying states of development and ownership share. A quick summary of these are as follows:
- Werner Lake Cobalt Project, Ontario, Canada – Cobalt/Copper/Nickel/Gold – GEMC 70% (currently)
- Millennium & Mount Isa Projects, Australia – Cobalt/Copper/Gold – GEMC 100% (currently)
- Lovelock and Treasure Box Project, Nevada, USA – Cobalt/Nickel/Copper – GEMC 85%
- Monument Peak Project, Idaho, USA – Copper/Silver/Gold – GEMC 50%
- Chance Lake & Amiral Projects, Quebec, Canada – Nickel/Copper/Cobalt/PGE – GEMC 50%
- Rana Nickel Project, Norway – Nickel/Copper/Cobalt/Gold – GEMC 10% + 1% NSR
Source: GEMC Investor Presentation
As efficient stewards of capital, GEMC is actively negotiating deals to get some of these properties explored using other people’s money. For example, on June 28th the Company signed a Definitive Option Agreement with Metal Bank Limited to commence work program on the Millennium Cobalt-Copper-Gold Project. An initial exploration program at Millennium commenced the first week of July including drilling of up to 4 holes for up to 800m RC drilling of the untested Northern Zone scheduled for early August. With that said, the Company recently raised $1.1 million to enable it to push forward on its own with exploration programs in Nevada and Idaho. In Nevada, GEMC recently expanded the drill program from 1,400 metres (6 to 8 drill holes) to 2,100 metres (9-10 drill holes) to capitalize on having drill contractors onsite at Lovelock so that the company can test historically high-grade copper and cobalt mineralization at Treasure Box. At Lovelock they will focus on making new copper-nickel-cobalt discoveries along newly defined conductors. Additionally, on July 14th GEMC announced a summer exploration program at the Monument Peak Project in Idaho including soil sampling, geological reconnaissance sampling, a drone magnetics survey and photogrammetry.
Now don’t get me wrong, I’m not implying that an investment in Global Energy Metals is the same as buying a critical materials ETF. But with ample news expected over the next few months, GEMC has a lot of torque and leverage to minerals integral to key technologies of the electric vehicle and energy storage markets. Yes, there is an awful lot of risk involved with junior mining companies. Nevertheless, based on yesterday’s close of $0.19 and only 27 million shares outstanding, the Company has a market cap of $5.1 million. Do your homework and decide how much value you ascribe to the assets Global Energy Metals has assembled.
Dean Bristow has been involved in the North American Crude Oil business for 30 years including Energy Trading, Infrastructure Development, Transportation, and Refining. During that ... <Read more about Dean Bristow>