VANCOUVER, BC / ACCESSWIRE / October 26, 2018 / Primary Energy Metals Inc. (CSE - Prim FSE - 1WZ:GR) ("Primary" or the "Company") is pleased to announce it has signed an arm's length acquisition agreement (the "Purchase Agreement") with the shareholders of 1177527 B.C. Ltd. ("1177527"). Pursuant to the terms of the Purchase Agreement, the Company will acquire all of the outstanding share capital of 1177527. In consideration for the acquisition, the Company will make a series of cash payments totaling $250,000 and will issue 20,000,000 common shares to the existing shareholders of 1177527. The Company will also assume a 2.0% net smelter returns ("NSR") royalty on commercial production from the properties held by 1177527. The NSR is owing to Contigo Resources Ltd., and one-half of it may be purchased at any given time in consideration for a cash payment of $1,000,000.
1177527 holds the rights to 39 mineral claims in various locations in the Province of Quebec totalling approximately 985.41 hectares (the "Hardy Project"). The claims comprise a number of independent projects, as follows:
- The Hardy and Nico Cobalt project claims are located approximately 250 km northwest of Baie Comeau, Quebec. Cobalt grades of 0.41%, 0.40%, 0.34%, 0.33%.
- The Kwai, Coudon, and Boudrias Cobalt project claims are located in the Godbout, Quebec. Cobalt grades up to 0.084%.
- The Muskrat and Perobonca - Begin Cobalt project claim are in the Lac Saint Jean area. Cobalt grades of 0.1022%, 0.1739%, 0.1408%
- Champ Cobalt project is located Sherbrooke, Quebec. Several showings were identified with up to 10% sulphides and coincident magnetic anomalies. These provided results of up to 2.5% combined Cu + Ni, with showing #5 grading 1.93% Cu and 0.60% Ni.
These grades are from selected samples and may not be representative of the mineralization hosted on the properties.
Patrick Morris, CEO and President stated, "we consider the Hardy Project in Quebec as a strategic investment that is the focus of management to enhance the value of the company for our shareholders. Primary will use its geotechnical team to assess historic data in developing an exploration plan that can effectively and efficiently define a potential resource. There is a massive demand for cobalt and the dynamics of sourcing an ethical supply is growing rapidly driven by the surge in the production of EV's."
THE GREEN ECONOMY RUNS ON COBALT
There are many types of lithium-ion batteries, but the vast majority of li-ions sold today use cobalt in some capacity.
In fact, by 2020 it is expected that 75% of lithium-ion batteries will contain cobalt. Why? It's because cobalt is the most important metal for increasing the energy density of lithium-ion cathodes.
Green uses such as EVs are driving the upwards trajectory of cobalt demand.
By 2020, almost 1/5 of cobalt demand will stem from electric vehicles.
Total refined cobalt demand:
Year |
Demand |
% xEV batteries |
% Electronics batteries |
Source: CRU
"Cobalt's demand growth profile remains one of the best among industrial metals peers. Its exposure to rechargeable batteries continues to play a crucial role." - Macquarie
Supply can tighten…
Chemical cobalt - the kind used in batteries, is expected to fall into a growing deficit over the next few years. By 2020, CRU expects that deficit to be at least 12,000 tonnes.
Cobalt prices have been rising, but they are nowhere near all-time highs yet.
All-time highs for cobalt prices happened in 2008, after the DRC government placed restrictions on export of ores and concentrates. For a brief stint, cobalt prices even exceeded $50/lb.
The current price? Roughly $26.06/lb.
"With this growth will come further disruption to the traditional market structures that have developed in cobalt over the last 30 years. In short, a new, more secure supply chain for the modern era will need to be created, a task that includes new mines, new refineries, and a more transparent supply chain." - Andrew Miller, Benchmark Minerals
Completion of the transaction with 1177527 is subject to completion of filings with the Canadian Securities Exchange, and confirmation as to title to the Hardy Project.
The technical information contained in this news release has been reviewed and approved by Thomas Clarke P.Geo., Pr.Sci.Nat. who is a Qualified Person with respect to Primary's "The Hardy Project" as defined under National Instrument 43-101.
About Primary
PRIMARY ENERGY METALS INC. (CSE: PRIM FSE: 1WZ:GR) is a listed junior exploration and development company and is engaged in the business of acquiring, exploring and developing ethically sourced Vanadium, Cobalt, Copper, Nickel, and Uranium focussed mineral resource properties to create value for its shareholders.
ACQUISITION FOCUS - Other projects Primary is investigating are in the clean energy sector. In this sector, the Company is focused specifically upon exploration opportunities to source green energy power minerals for use in battery production. Primary's interests in this sector are guided by the following:
- Identifying opportunities in regions that are conducive to mining due to the regulatory nature of the government with existing infrastructure.
- Identifying opportunities in geographical locations that provide easy access large markets for these metals.
- Identifying opportunities with locations with existing mine shafts.
ON BEHALF OF THE BOARD OF DIRECTORS
Patrick Morris
CEO and President
Telephone: +1 778-735-1000
E-mail: [email protected]
Neither the Canadian Securities Exchange nor its Regulation Services Provider (as that term is defined in the policies of the Canadian Securities Exchange) accepts responsibility for the adequacy or accuracy of this release.
Forward Looking Statements
Certain information set forth in this news release may contain forward-looking statements that involve substantial known and unknown risks and uncertainties. All statements other than statements of historical fact are forward- looking statements, including, without limitation, statements regarding future financial position, business strategy, use of proceeds, corporate vision, proposed acquisitions, partnerships, joint-ventures and strategic alliances and co- operations, budgets, cost and plans and objectives of or involving the Company. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "predicts", "intends", "targets", "aims", "anticipates" or "believes" or variations (including negative variations) of such words and phrases or may be identified by statements to the effect that certain actions "may", "could", "should", "would", "might" or "will" be taken, occur or be achieved. A number of known and unknown risks, uncertainties and other factors may cause the actual results or performance to materially differ from any future results or performance expressed or implied by the forward-looking information. 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 impact of general economic conditions, industry conditions and dependence upon regulatory approvals. Readers are cautioned that the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may prove to be imprecise and, as such, undue reliance should not be placed on forward-looking statements. The Company does not assume any obligation to update or revise its forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by securities laws.
SOURCE: Primary Energy Metals Inc.