Green Battery Minerals Moving Closer to Potential PEA with Announcement of Flow Through Private Placement

2021-05-20 / @thenewswire

(TheNewswire)

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VANCOUVER, B.C. - TheNewswire - May 20th, 2021 - Green Battery Minerals Inc. (TSXV:GEM) (FSE:BK2P) (WKN:A2QENP) (OTC:GBMIF) (“Green Battery” or the “Company”) is pleased to announce it is moving closer to completing the Company’s planned Preliminary Economic Assessment (“PEA”) on its road accessible “Berkwood Graphite Project, Northern Quebec,” with today’s announced plans to issue up to a total of 2,037,000 flow-through units at a price of $0.25 for gross proceeds of $509,250. Each unit will consist of one flow-through common share and 1/2 warrant, each whole warrant exercisable for one common share at a price of $0.50 for a period of two years. The Company will apply to the TSX-Venture to close and issue the securities.

Finder fees and commissions may be paid by the Company in accordance with the policies of the TSX-Venture Exchange.

The closing of the private placement is subject to TSX Venture Exchange approval.

The proceeds from the issuance of the flow-through shares will be used for Canadian exploration expenses and will qualify as flow-through mining expenditures, as defined in Subsection 127(9) of the Income Tax Act (Canada), which will be renounced to the subscribers with an effective date no later than Dec. 31, 2022, to the initial purchasers of the offered securities in an aggregate amount not less than the gross proceeds raised from the issue of the flow-through shares, as applicable, and, if the qualifying expenditures are reduced by the Canada Revenue Agency, the Company will indemnify each subscriber for any additional taxes payable by such subscriber as a result of the Company's failure to renounce the qualifying expenditures as agreed.

Net proceeds will be used for costs associated with the continued exploration/drill program and reports for a planned PEA for the Berkwood Graphite project.

The securities to be issued will be legend with the required four months plus one day hold period from issuance.

The goal is to move towards creating a PEA which is in our path forward as laid out in the Company’s News Release of April 19th, 2021.

The Company confirms there is no material fact or material change related to the Company which has not been generally disclosed.

The purpose of a PEA is to evaluate a mineral project’s potential economic viability.

A preliminary economic assessment, (PEA), is defined as a study that includes a preliminary economic analysis of the potential viability of a project’s mineral resources. Preliminary economic assessments are completed before prefeasibility and feasibility studies and are an important step towards feasibility which helps determine whether a company should consider developing a mineral resource project.

Before a mineral resource project becomes a mine, several technical studies must be completed on a deposit to ensure its economic viability. As mentioned, putting a PEA together is one of the first steps in the evaluation process, with prefeasibility and feasibility studies following.

Generally, PEAs will include base case information on the estimated capital costs associated with bringing a project into production, an estimate of how the mine will operate once it is built, how much metal/minerals it will produce and at what operating cost. The PEA helps the Company understand risks and uncertainties associated with a project. The study can be part of exploration with both open-pit mining and underground mining and should include a mine plan.

More specifically, a PEA tends to have information on pre-production capital costs, life-of-mine sustaining capital, mine life and an estimate of projected cash flow, as well as details on processing and production methods and rates.

PEAs also include information on mineral project economics at various metal/mineral prices. This will include an estimate NPV (Net Present Value) of the mine and an estimated IRR (Internal Rate of Return).

PEA allows for companies to help predict an estimated potential profit margins, which help determine their NPV.

Tom Yingling, President and CEO states, “We are very pleased to move closer to the planned PEA. Neighbouring Graphite companies in Quebec have significantly higher market cap then Green Battery and management feels it is due to a lack of a positive PEA. By moving forward with the financing, it should allow the Company to proceed with a much larger drill program this Summer which helps move closer to the planned PEA. The upcoming drill program will consist of infill and step out drilling to potentially expand the already proven resource on Zone 1, which to date has only been drilled approximately 20 percent. In addition, we plan on drilling our separately located Zone 6. The Company has already confirmed that Zone 6 contains Graphite as it has been channel sampled numerous times at surface and it has produced high grade, large flake graphite. The Zone 6 Geophysical anomaly, that has been proven accurate by channel sampling, also implies a large Graphitic body at surface. This reconfirms our mission to repeat what Mason has done, just on our side of the claim boundary line that we share with Mason.”

Qualified Person: Mr. Dave Kelsch, P.Geo. is a Qualified Person as defined by National Instrument 43-101 guidelines, and he has reviewed and approved the technical content of this news release.

About the Company: Green Battery Minerals is managed by a team with over 150 years collectively with a proven track record of not just finding numerous mines but building and operating them too. The Green Battery Mineral management team’s most recent success is the discovery of the Berkwood Graphite resource in Northern Quebec. Green Battery Mineral owns this asset 100 percent and the Company’s shareholders should benefit from this asset as the demand for Graphite for electric vehicles increases significantly.

On Behalf of the Board of Directors

Green Battery Minerals Inc.

‘Thomas Yingling’

President, CEO & Director

FOR MORE INFORMATION, PLEASE CONTACT:

Investor Relations:

or 1-604-343-7740

info@greenbatteryminerals.com www.greenbatteryminerals.com

Disclaimer for Forward-Looking Information:

Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management’s current views and are based on certain expectations, estimates and assumptions, which may prove to be incorrect.

Neither 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 or accuracy of this release.