Global Energy Metals Corp. (TSXV:GEMC) Building a Niche Cobalt Supply Alongside Strategic Downstream Battery Partners
April 27, 2017
•9 min read
Global Energy Metals Corp. (TSXV:GEMC) is a resource company focusing on late stage or production projects globally. The strategy around the advancement of the projects comes from in-place partnerships with strategic battery manufacturing intermediaries and groups that can take projects that host cobalt into cash-flowing opportunities. It’s about looking forward and working backwards, and being present for the demand surge for cobalt and the battery metals critical to the rechargeable battery and energy storage markets that are only now in their infancy.
The management team, having spent over a decade focused on the cobalt space, has great knowledge, experience, and networks to help them succeed in becoming a key player in the cobalt marketplace.
GEMC’s strategy is to aggregate projects and supply cobalt material within a diversified portfolio designed to hedge individual commodity and stand-alone project risk. GEMC is also positioning itself to be ready for off-take agreements.
GEMC is targeting an aggressive pursuit of an identified target list of projects and opportunities that can be rapidly advanced over the next several months through technical and commercial partnerships with off-takers and strategic partners.
From the company’s site, they summarize the company’s strategy as follows:
“GEMC’s investment focus is on robust projects, which have been significantly de-risked and are positioned in the lower half of their sector’s cost curve, thus increasing the potential for strong capital gains throughout the commodity life cycle.”
Actioning that top down approach strategy, GEMC has moved forward with a long-term agreement with a Chinese Battery manufacturing company.
Chinese Battery Manufacturing Strategic Partnership
On March 22, 2017, the company management solidified a well-established relationship with a downstream strategic partner by signing a long-term deal with Beijing Easpring Material Technology Co., a leading battery manufacturing company to co-invest in and develop cobalt projects.
Easpring is a recognized name in the industry being the first Chinese supplier to export lithium cathode material to many overseas markets. Currently, Easpring supplies five of the world’s six largest lithium battery manufacturers, and is the sole Chinese supplier of high quality cathode materials to China, Japan, and Korea’s high-end lithium ion battery markets.
GEMC will acquire the expertise and relationships that Easpring offers, including low-cost capital from Chinese institutions, leading Chinese engineering and construction skills, and Chinese machinery, equipment and other critical suppliers that meet world-class standards of quality at competitive costs in exchange for access to GEMC’s project development opportunities.
Mitchell Smith, Global Energy Metals’ President and CEO stated:
“…Easpring is an example of China’s drive to secure stable supplies of natural resources, including cobalt, crucial to its economy. This multi-faceted partnership will provide significant opportunities to work together on projects and finance as we continue to create value for our respective shareholders.”
The above agreement is a direct representation of management’s focus, partnership capabilities, and mine advancement capabilities.
Management Team
GEMC management has complementary skills and experience covering mining exploration and development, investments in mining projects, international debt and equity financings, corporate and investment banking, M&A, and capital markets. The team has a proven history and a deep understanding of the battery metals supply chain and markets, and has aligned itself with a strong network of partnerships and relationships with leading battery component manufacturers and other downstream users of battery-related metals. The team is also a major shareholder in GEMC and is focused on maintaining a sound share structure and financing the company in ways that benefit existing and future shareholders.
Erin Chutter, Executive Chairperson & Director
- Erin Chutter provides senior
management and advisory services to growing international resource and
industrial companies dealing with financing, acquisitions, off takes,
partnerships, government, business development and representative requirements,
including those involved in Central Asia, Russia and China with North American
interests. - Erin led a multinational and
multidisciplinary financial and technical team to develop the Karakul Cobalt
Mine Project in Altai, Russia as well as mining projects in Canada and the US.
She carries particular expertise in complex international projects requiring
creative financing solutions. - Highly connected and active in
Canadian politics since the late 1980s, Erin has managed and advised campaigns
at all three levels of government, as well as party leadership races. She has
also served on staff to federal and provincial ministers and leaders including
the Leader of the Opposition (BC) and the Ministers of Defense and Indian
Affairs (Canada).
Mitchell Smith, President & CEO
- Prior to being appointed
President & CEO of Global Energy Metals, Mr. Smith held Accomplished
executive and business development professional with deep experience and proven
success developing and executing on corporate strategies, marketing
relationships and maximizing business opportunities for long-term engagement
and strategic relationships.
- Early adopter to the battery
space recognizing the proliferation and mainstream appetite for handheld smart
devices, mobiles phones and EVs and the critical role the metals associated
with the market would play
- Negotiated and structured
off-take agreements for cobalt material and built relationships with Chinese
battery manufacturer intermediaries and facilitated commerce by arranging joint
ventures, marketing and engineering and procurement construction contracts.
Paul Sarjeant, VP Projects & Director
- Mr. Sarjeant, P. Geo, has
extensive exploration, project evaluation and acquisition experience both in
Canada and internationally and has managed several junior resource companies. Mr. Sarjeant began his career with
Echo Bay Mines Ltd. as a project geologist working on projects in the NWT,
Archean greenstone belts, Lupin Mine peripheral project, and skarn properties
in BC and Ecuador.- He was appointed Senior
Geologist, International Exploration Group, responsible for project evaluation
outside of North America, including precious and base metals projects in South
America, East Africa, South East Asia, Russia, Mongolia, Australia, New Zealand
and Europe.
Luis Hadic, CFO
- Mr. Hadic brings more than 10
years of accounting experience across various sectors including, technology,
mineral exploration and mining and manufacturing industries focusing on
financial reporting, regulatory compliance, internal control and corporate
finance activities. Mr. Hadic has held CFO and
controller positions with several private and public companies and worked as a
corporate financial consultant- In 1997, Mr. Hadic concluded
his studies at the University of Uruguay in the Faculty of Marketing and Sales. - Mr. Hadic has also worked in
the banking sector for over five years.
Jaime Stallwood, Corporate Development
- 30 years entrepreneurial experience managing companies from early stage development to multi-million dollar NASDAQ listed companies on both the operations and corporate levels.
- Managed a national sales force in excess of 200 salespeople for a national Telecom Provider while at the same time implementing national consumer marketing and initiatives.
- Key involvement with LML Payment Systems (a NASDAQ listed company) that was sold for $110M in first quarter of 2013.
- Has participated in numerous M&A transactions as well as subsequent integration, utilization and marketing activities.
Graham Abbott, Corporate Communications
- Mr. Abbott has 12 years of corporate experience with Telus, with involvement in business sales, operations and team management and responsibility for multi- million dollar transactions.
- In-depth experience with long-cycle corporate deal development and complex relationship management.
- Involvement with several public companies in business and corporate development (both strategic and financial), operations management and shareholders relations activities.
- Key member of team responsible for consolidating and finalizing the Salares Lithium property package into the publicly listed company that became Talison Lithium. Talison Lithium was acquired for over $750M in the first quarter 2013.
Ian Spence, Australasia Acquisitions Lead
- Mr. Spence has extensive experience in the international exploration, resource development and mining sector, having held a number of directorships and senior operational and general management roles over several years with a number of international resource companies in a number of commodities.
- Mr. Spence is a Sydney-based geologist who has specialised in cobalt, copper, gold, silver and heavy mineral sands discovery and development.
- He has extensive experience in the international finance and capital markets arena, having spent several years in an analytical and capital raising capacity for a number of Australian and international based capital firms.
- His strong capital raising
abilities are complimented with extensive experience in IPOs, marketing communication
with stakeholders, as well as joint venture negotiation.
Stormcrow Capital – Jon Hykawy & Tom Chudnovsky, Partner
- Stormcrow Capital is a Toronto based research, consulting, and capital markets firm, which focuses heavily on niche industrial materials that are critical in energy and technology applications.
- The principals at Stormcrow bring deep technical and market expertise in lithium, cobalt, graphite, tin, and others.
- As former senior members of various investment banking institutions, the principals also bring a strong professional, client and strategic network, which will be critical in helping Global Energy Metals achieve its long term objectives.
Chris Berry, Partner
- Chris is a well-known writer, speaker, and analyst with a focus on energy metals supply chains, specializing in lithium, cobalt, and graphite.
- He is the co-author of a newsletter focused on discovery called The Disruptive Discoveries Journal.
- Chris spent 15 years working across various roles in sales and brokerage on Wall Street before devoting his efforts towards macro economic and natural resource analysis.
James Gilbert, Partner
- Jim has 20+ years of mining and metals investment, financing and transaction expertise, acquired in advisory, executive leadership and governance roles in both publicly-listed and private companies.
- His experience includes the structuring, negotiation and closing of base and precious metals project financing transactions, for single and multi-sponsor projects totaling billions of dollars, as well as the underlying joint venture arrangements among project sponsors – including strategic partners and offtakers.
New Tigers Consulting – Wei Qian, Partner
- Excellent Chinese battery market sector relationships.
- New Tigers Consulting Limited and Wei Qian have negotiated and executed offtake and financial arrangements for various resource focused groups.
- Works with a strong network of battery metals companies and professionals in Beijing, Greater Shanghai area, Shenzhen, Australia, Canada, Ireland and the USA.
For full bios of the management and directors please visit the Team section of Global Energy Metals’ website.
Werner Lake Cobalt Project
GEMC holds a 100% ownership in Werner Lake, a past producing Canadian cobalt project. The project gives exposure to one of the only past-producing cobalt mines in Canada that has been re-permitted and re-engineered in the last 20 years. It is also one of the most advanced, near-term primary cobalt projects in Canada, with excellent potential for additional cobalt mineralisation through GEMC’s extensive land package.
GEMC has engaged AGP Engineering to complete a NI 43-101 resource estimate report, which will include data from a 2009-2010 work program that totaled 7,565 metres of drilling of holes used to investigate the property and the openness of the deposit at depth and to the east. Drill results from that program included a 12.30 metre intercept averaging 1.21% cobalt including a very high grade interval grading 12.48% cobalt over 0.90 metres (GEMC News Release, March 20, 2017).
This North American primary cobalt asset aligns well with the company’s mission in procuring projects and building an efficient and reliable raw material supply chain that meets strict end-user specifications in the rechargeable battery sector.
Strength in the Cobalt Market
The energy storage revolution is propelling still higher demand for the key battery minerals as the battery giants are scaling up battery production with “mega-factories” and are now acquiring raw materials through off-take agreements. The scale back in production in traditional metal mines in copper and nickel has resulted in supply constraints in cobalt. Coupled with the outlook that cobalt demand is expected to outpace supply growth for the foreseeable future, a bottleneck in the lithium-ion battery supply chain is well underway. This can be witnessed in the exponential increase in cobalt pricing in the last year seeing it more than double, with further price gains expected in the near term.
Since the listing of GEMC’s shares in early March 2017, the company has been making rapid progress in building its presence in the cobalt space. Guided by sector expertise, a commitment to supply cobalt material for established downstream partners and supportive long-term cobalt fundamentals – Global Energy Metals Corp. (TSXV:GEMC) – for exposure to cobalt is a company to watch.
Trending Now
2
4
Read Next
Thought Leaders
Introducing the NEW Equities News: Transforming the world by investing in what matters most
Paula DeLaurentis
Mar 15, 2024
Economic
An opportunity for women in the clean-energy transition
Green Money
Mar 12, 2024
Economic
Making diversity in venture-capital funding a priority
Yinka Faleti
Mar 11, 2024
Environment
E-bike incentives are a costly way to cut carbon emissions, but they also promote health
The Conversation
Mar 7, 2024
3 dividend-paying health-care stocks that top analysts recommend
Benzinga
Mar 7, 2024
Economic
The true cost of food is far higher than what you spend at the grocery checkout
The Conversation
Mar 6, 2024
The Latest
Thought Leaders
Introducing the NEW Equities News: Transforming the world by investing in what matters most
Mar 15, 2024
Economic
An opportunity for women in the clean-energy transition
Mar 12, 2024
Economic
Making diversity in venture-capital funding a priority
Mar 11, 2024
Environment
E-bike incentives are a costly way to cut carbon emissions, but they also promote health
Mar 7, 2024