Vancouver-based Global Energy said it had issued 384,627 shares to Nevada Sunrise (TSXV:NEV) and paid US$20,000 to the underlying vendor as part of the agreement to acquire the controlling interest in the Lovelock cobalt mine and adjacent Treasure Box project.
Global Energy believes Lovelock has high-grade cobalt-nickel-copper potential.
The company said it was reviewing exploration plans for both properties, which were in Churchill county, about 150km east of the Tesla Gigafactory in Sparks, Nevada.
The programme would assist with an ongoing extensive review and reinterpretation of historic data, Global Energy said.
"There has been a tremendous amount of attention placed on the US for it to stop being merely a bystander in the global battery arms race and start developing more domestic supplies of battery metals such as cobalt, nickel and copper to supply its homegrown battery factories, including Nevada-based Gigafactory 1," said CEO Mitchell Smith.
"The Lovelock and Treasure Box projects are prime examples of US based battery metal projects that are very prospective and strategically located in close proximity to a domestic end-user with a large appetite for the critical materials used in EV and energy storage technology."
Global Energy will make staged cash payments totalling US$75,000 over two years, as well as issue more than 1.72 million shares at 15c and more than 1.6 million reimbursement shares.
According to the company, these are to reimburse share payments made according to the underlying option held by Primus Resources. Reimbursement shares are subject to a floor price of $0.05.
Primus will retain a 2% net smelter return royalty with the company and Nevada Sunrise as joint-venture partners, having the right to buy one-half (1%) for 10 years from the effective date of the Primus underlying option for $1.5 million.
The Lovelock property currently consists of 70 unpatented lode claims in the Cottonwood Canyon area of the Stillwater Range totaling about 567ha. The Nevada assets are drill-ready and to date eight diamond drill targets have been identified.
Global Energy (TSXV:GEMC) gained 9% or C0.5c in Toronto on Tuesday to settle at 6c, capitalising the company at $3.3 million.
