High-Tech Metals Buys Global Energy Metals Werner Lake Cobalt Copper Project Holdings

High-Tech Metals completed its acquisition of the Werner Lake copper-cobalt project near Kenora, Ontario from Global Energy Metals having raised AUD $4,718,000 and closing its initial public offering with its admission to the Australian Stock Exchange under trading symbol HTM.

Highlights of the Transaction
HTM acquires the Werner Lake Cobalt Project located in north-western Ontario, within the Kenora Mining District from Global Energy Metals Corporation (70%) and Marquee Resources Limited (30%). AUD $50,000 cash and 2,500,000 shares of High-Tech were received by GEMC upon closing of the transaction making Global Energy a 7.6% shareholder of High-Tech.

High-Tech now listed on the ASX with trading symbol HTM having raised AUD $4.718M dollars on its IPO.

“The world needs more high-quality cobalt and High-Tech is committed to begin work to realize the potential of the Werner Lake Cobalt Project in a sustainable and responsible manner to ensure strong outcomes for all stakeholders,” High-Tech Metals executive director Sonu Cheema said. “Having completed the IPO, High-Tech is in a unique position to advance exploration on its flagship project focused on EV metals in a tier-1 jurisdiction.”

Exploration upside and work program
Noting that Ontario is one of the safest mining jurisdictions in the world, Global Energy said the planned technical exploration program for the project will aim to review the existing exploration and geological data, evaluate drill targets that weren’t previously drilled and establish new drill targets. It said High-Tech Metals seeks to further establish new drill targets outside of the existing orebody by utilizing electromagnetic techniques.

Indicated mineralisation remains open at depth and along strike with the potential for undiscovered high grade zones. Substantial exploration has been committed to by High-Tech as they work to unlock the high-grade cobalt and copper potential of the Werner Lake property.

“The world needs more high-quality cobalt and High-Tech is committed to begin work to realize the potential of the Werner Lake Cobalt Project in a sustainable and responsible manner to ensure strong outcomes for all stakeholders. Having completed the IPO, High-Tech is in a unique position to advance exploration on its flagship project focused on EV metals in a tier-1 jurisdiction, " Cheema added. "On behalf of the High-Tech Metals Board, we welcome all shareholders onto our register”

Transaction Terms
The Mineral Property Purchase and Sale Agreement provided, amongst other matters, that the aggregate purchase price for Werner Lake is AUD $700,000 of which AUD $50,000 was paid to the Company on execution of the Mineral Property Purchase and Sale Agreement and the balance of which was  satisfied by the issuance of a total of 3,250,000 shares of High-Tech (the “Consideration Shares”) as to 2,500,000 Consideration Shares to Global Energy Metals and 750,000 Consideration Shares to Marquee Resources Ltd based on project ownership.

Global Energy now holds 7.6% in High-Tech following High-Tech closing AUD $4.718 million as part of its IPO to the ASX.  

Funds raised by High-Tech will be used to advance exploration of the Werner Lake project, identify additional opportunities to grow the company, and for general corporate and working capital purposes.

The Werner Lake project is located in Ontario, one of the safest mining jurisdictions in the world. The Company’s planned technical exploration program for the Project will aim to review the existing exploration and geological data, evaluate drill targets that weren’t previously drilled and establish new drill targets at the site.

HTM seeks to further establish new drill targets outside of the existing orebody by utilizing electromagnetic techniques.
Planned drilling program over the drill targets deemed to best provide opportunities for mineralisation to be undertaken with drilling to provide material for more advanced metallurgical test-work.
Previous mining indicates that the Mineral Resource is likely amenable to metallurgical extraction via traditional process methods.

Werner Lake Project
The project is located near the Ontario-Manitoba border in the Kenora Mining District. The Werner Lake Geological Belt hosts numerous cobalt-copper and base metal showings, deposits and past producing mines.

The two largest cobalt deposits defined to date are the Werner Lake Minesite Deposit and the West Cobalt Deposit. The area has seen extensive exploration and development work since the original discovery of cobalt in 1921.  The Werner Lake Cobalt Mine produced cobalt ore in the 1930s and 1940s from the “Old Mine Site” deposit area and with the discovery of the main ore area at the West Cobalt Deposit, was taken to production decision in the late 1990s. At the time, infrastructure was put in place, including four season road, mill buildings, and tailings settling area.

Decline ramp, drifts and raises of over 258 metres were driven into the heart of the deposit. Mineralisation remains open at depth and along strike with the potential for undiscovered high grade zones. Metallurgical studies have shown that excellent cobalt recoveries can be yielded from a standard flotation mill process followed by a low-pressure oxidative hydrometallurgical leach (net recovery 88%), to produce a cobalt carbonate end product.

About High-Tech Metals Limited
High-Tech Metals Limited (ASX:HTM) is an ASX-listed company focused on the exploration and development of its flagship, 100 per cent owned Werner Lake Cobalt Project (the Project) located in north-western Ontario, within the Kenora Mining District, approximately 85 km north-northwest of Kenora, Ontario and approximately 170 km east-northeast of Winnipeg, Manitoba.
 

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