Global Energy Metals Signs Strategic Partnership with Leading Battery Manufacturing Company
VANCOUVER, MARCH 22, 2017 / Global Energy Metals Corp. TSXV:GEMC ("Global Energy Metals", the "Company" and/or "GEMC") is pleased to announce the signing of a long-term strategic cooperation agreement with Beijing Easpring Material Technology Co. ("Easpring"), a leading battery manufacturing company, to jointly invest in and develop cobalt projects. Easpring is recognized as a leader in its industry and was the first Chinese supplier to export lithium cathode material to multiple overseas markets. At present, Easpring supplies five of the world's six largest lithium battery manufacturers, and is the only Chinese supplier of high quality cathode materials to China, Japan and Korea's high-end lithium ion battery markets.
As part of the strategic cooperation agreement, GEMC and Easpring have agreed to a joint venture that will allow for the identification, acquisition, development, funding and commercialization of cobalt projects. 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:
"Our formal agreement launches a long-term strategic relationship with one of China's leading battery cathode manufacturing companies. GEMC recognizes Easpring's international reputation for its world-class financing and technical capabilities. 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.
"Easpring has a strong commitment to supply cathode materials of lithium ion batteries products to leading downstream users worldwide," stated Easpring's Purchasing Director, Jashon Guan. "We have a vested interest in building an efficient and reliable upstream raw material supply chain and see significant value creation opportunities in partnering with Global Energy Metals on projects that fit our resource strategy and secure access to cobalt material."
The parties anticipate that the strategic cooperation agreement will take the form of a joint venture, whereby the partners will complete the identification, acquisition and development, funding and commercialization of various project(s). As opportunities for major projects arise in the future, GEMC and Easpring may agree to develop the mine together if it is considered in the best interests of both companies.
GEMC has agreed to grant Easpring a Right of First Refusal to acquire an interest of each project by committing to pay for the pro-rata project acquisition and ongoing development costs. Easpring may exercise this financing option within a period of 60 days after having received written notice from GEMC to the effect that it has identified a project for acquisition.
Beijing Easpring Material Technology Co.,Ltd, (SHE:300073)
Founded in 2001 and based in Beijing, China, Easpring engages in the research, development, production and sale of energy materials. It offers lithium cobalt oxide, multi-element oxide, lithium manganese oxide, and other cathode materials for small lithium batteries and power batteries, as well as electronic ceramics materials. The company is a leading specialized supplier of cathode material for lithium-ion batteries to industry giants.
Global Energy Metals Corp. (TSXV:GEMC)
Global Energy Metals is focused on offering security of supply of cobalt, a critical material to the growing rechargeable battery market, by building a diversified global portfolio of cobalt assets. GEMC anticipates growing its business by acquiring project stakes in battery metals related projects with key strategic partners. Global Energy Metals currently owns and is advancing the Werner Lake Cobalt Mine in Ontario, Canada.
For Further Information:
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Cautionary Statement on Forward-Looking Information:
Certain information in this release may constitute forward-looking statements under applicable securities laws and necessarily involve risks associated with regulatory approvals and timelines. Although Global Energy Metals believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Except as required by law, the Company undertakes no obligation to update these forward-looking statements in the event that management's beliefs, estimates or opinions, or other factors, should change. For more information on Global Energy and the risks and challenges of their businesses, investors should review the filings that are available at www.sedar.com.
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