GBML Announces LOI to Exclusively Negotiate an Option to Lease the Mineral Rights in the Michigan Based Sawyer Camp, a Prospective Nickel, Copper Property
Vancouver, British Columbia--(Newsfile Corp. - September 8, 2020) - Global Battery Metals Ltd. (TSXV: GMBL) (FSE: REZ) (OTCQB: REZZF) (the "Company" or "GBML") is pleased to announce that it has entered into a non-binding letter of intent (the "LOI") with a USA corporation ("USCORP") pursuant to which the parties have agreed to exclusively negotiate an option agreement (the "Option Agreement") that provides GBML with an option to lease the mineral rights of the Sawyer Camp from USCORP.
The Sawyer Camp is located approximately 50 km to the south of the Eagle Mine, which is owned by Lundin Mining Corporation. The Eagle and Eagle East deposits had a Proven and Probable Mineral Reserve of 4.8 million tonnes grading 2.8% Ni and 2.4% Cu along with credits of Co, Pt, Pd and Au (effective December 31, 2016). The Eagle deposit was discovered by Rio Tinto plc and put into production by Lundin in 2014.
Readers are cautioned that the information in this press release regarding the Eagle mine is not necessarily indicative of the mineralization on the property of interest.
GBML first visited the Sawyer Camp in 2018. No other drilling or ground geophysics have been done; however, GMBL expects that drilling three 250 m core holes will advance its understanding of the geology. The holes will test for the presence of Precambrian aged peridotite intrusions that are the host rock for the nickel-copper mineralization at the Eagle Mine.
The LOI provides that GBML has one year to complete its due diligence and exclusively negotiate the Option Agreement. During this period, GBML intends to drill three test core holes. To achieve this, GBML has: (i) hired a Michigan-based geological and permitting service provider; (ii) a drill permit application in progress; (iii) initiated talks with a local drill contractor; and (iii) planned the drilling to commence in early October, at a maximum cost of US$150,000.
Should the drill results yield satisfactory results, the LOI provides that GBML and USCORP will commence good faith negotiations to execute a mineral lease agreement to be completed within the one-year period after the date of the LOI.
The LOI provides that the Option Agreement will be on terms acceptable to both parties, acting reasonably.
Michael Murphy CEO states "This is an exciting low risk high reward opportunity which, if successful, is expected to create material value for shareholders. We continue to actively search for additional properties including those in the precious metals arena."
Qualified Person
All scientific and technical information in this press release has been prepared under the supervision of Cameron Bell, P. Geo. a consultant and Director of GBML, and a "qualified person" within the meaning of National Instrument 43-101. Readers are cautioned that the information in this press release regarding the Eagle mine is not necessarily indicative of the mineralization on the property of interest. The QP has been unable to verify the information in this press release about the Eagle mine, but such information was publicly disclosed (in a report titled "Technical Report on the Eagle Mine, Michigan, U.S.A." dated April 26, 2017) and the QP believes it is reliable.
About GBML Battery Metals Ltd.
GBML is a mineral exploration company with a focus on metals that make up and support the rapid evolution to battery power. GBML's common shares are listed on the TSX Venture Exchange (GBML), OTCBB (REZFF) and Frankfurt (REZ). GBML currently has two projects: (1) an option to acquire up to 90% of the North-West Leinster Lithium property in Ireland, and (2) a 55% stake in Peru based Lara copper property, which has over 10,000 metres of drilling. As previously disclosed, Minsur S.A., a Peruvian mining company, entered into an option agreement with GBML and Lara Exploration Ltd. to acquire the Lara property. Please see the press release of July 28th, 2020 for more information. More information about GBML is available under its profile on SEDAR at www.sedar.com or at www.gbml.ca.
Michael Murphy BA, MBA, MSc., ICD
President & CEO
E: MM@gbml.ca
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy and/or accuracy of this release.
Forward Looking Statements
This press release contains forward-looking information. Forward-looking information in this press release includes, but is not limited to, statements about the Company's activities during the due diligence and exclusivity period, and the timing for entering into and the proposed terms of the Option Agreement. These statements are based on information currently available to the Company and the Company provides no assurance that actual results will meet management's expectations. In certain cases, forward-looking information may be identified by such terms as "anticipates", "believes", "could", "estimates", "expects", "may", "shall", "will", or "would". These forward-looking statements are subject to numerous risks and uncertainties, certain of which are beyond the control of the Company, including, but not limited to the potential for gold and/or lithium at any of the Company's properties, the prospective nature of any claims comprising the Company's property interests, the impact of general economic conditions, industry conditions, dependence upon regulatory approvals, uncertainty of sample results, timing and results of future exploration, and the availability of financing. Please refer to the Company's MD&A for the year ended April 30, 2020 and other disclosure documents filed under its profile on SEDAR for other risks that could materially affect the Company. These and other factors should be considered carefully, and readers should not place undue reliance on the Company's forward-looking information. The Company does not undertake to update any forward-looking information that may be made from time to time by the Company or on its behalf, except in accordance with applicable securities laws.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/63364