Global Energy Metals signs pact with Canada Cobalt Works to use Re-2OX to extract battery grade product
COQUITLAM (Scrap Register): Global Energy Metals Corporation has signed a memorandum of understanding with Canada Cobalt Works, a junior company with a proprietary process known as Re-2OX that extracts cobalt, precious metals and base metals without using a traditional smelter.
The deal allows for cobalt-, nickel- and copper-bearing material from Global Energy Metals’ Lovelock and Treasure Box projects to go through the Re-2OX process to confirm efficient battery metal extraction with the aim of creating a battery-grade test product.
The Re-2OX process bypasses the normal smelting process to recover cobalt, precious metals and base metals and create battery-grade sulfate material.
Lovelock and Treasure Box are located in Churchill County, a 90-minute drive from the Tesla-Panasonic Gigafactory 1 in Nevada.
Under the terms of the strategic investment, CCW will take an immediate equity position in GEMC of 2 million units at $0.075 per unit for a total of $150,000. Each unit consists of one share and one warrant exercisable at $0.10 for 36 months from the closing date.
Canada Cobalt will oversee the testing process in order to protect its intellectual property and results will be delivered to Global Energy Metals, which will also pay a C$200,000 up front fee.
"Partnering with Canada Cobalt Works and utilizing their Re-2OX Process is a crucial step in unlocking the potential Lovelock and Treasure Box provide for shareholder exposure to strategically important US-based battery mineral assets,” said GEMC’s CEO Mitchell Smith.
“Significantly, Re-2OX has allowed Canada Cobalt to become the first company in Canada's cobalt heartland to produce a battery-grade cobalt sulphate test product with nickel-manganese-cobalt formulations in their pipeline," he said.