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Be the first with the news that moves the market- Global Energy Metals (TSXV:GEMC) is consolidating its shares to fund its copper, nickel and cobalt projects
- The company will consolidate the shares ten-to-one, bringing the total number issued and outstanding to 9,730,117
- Global Energy will use the immediate proceeds to purchase an 85 per cent interest in the Treasure Box and Lovelock projects in Nevada
- The consolidation is still pending TSXV approval
- Global Energy Metals (GEMC) was down 33.3 per cent, with shares trading for C$0.01
Global Energy Metals (TSXV:GEMC) is consolidating its shares ten-to-one and restructuring to advance its nickel, cobalt, and copper project in Nevada.
Consolidating the shares will help the company to fund its ongoing battery metal assets. Specifically, Global Energy Metals wishes to fast-track the Lovelock and Treasure Box projects.
The company will use the immediate funds to earn to 85 per cent interest in Lovelock and Treasure Box. Global Energy sees these assets as both high-grade and growth-stage.
The company also pointed out that assets like this are becoming more sought after in the US. This is because the US government is now developing a domestic supply of key metals and minerals.
Global Energy also stated that Nevada especially has a growing corporate demand for battery metals, evidenced by the Tesla Gigafactory. The factory operates 150km from Global Energy’s claim and produces lithium-ion batteries for the growing electric car market.
In the immediate future, Global Energy will perform a follow-up exploration program at Lovelock, in hopes of developing the cobalt-nickel discovery zone.
This program will be property-wide and outline the mineralisation structures with the help of historical data.
The consolation will take the current 97,301,171 shares issued and outstanding down to 9,730,117. This will not change any current shareholders’ proportionate interest. As a result, the company does not have to seek shareholder approval.
However, the company is required to seek TSXV approval to continue listing. Global Energy has stated that TSXV approval is not guaranteed. Therefore, the company may need to cease trading if it continues to pursue the consolidation.
Global Energy Metals (GEMC) was down 33.3 per cent, with shares trading for C$0.01 at 12:59pm EST.
