Global Energy Metals to option Monument Peak Project to Zimtu Capital, Idaho

Global Energy Metals Corp. [TSXV: GEMC; OTCQB: GBLEF; FSE: 5GE1] has entered into a non-binding letter agreement with Zimtu Capital Corp. [TSXV: ZC; FSE: ZCT1] providing for a proposed option agreement to advance exploration and development at the company’s Monument Peak silver-copper-gold project located in Idaho, United States.

Under the proposed option agreement, Zimtu (or an approved assignee) would be granted a multistage option over a four-year term to acquire Global Energy Metals’ entire 50% interest in Monument Peak, subject to a 1.0% net smelter returns royalty (NSR royalty) in favour of the company.

The transaction provides Global Energy Metals with non-dilutive exposure to exploration success at Monument Peak through cash payments, equity consideration, exploration expenditures and retained royalty interest.

Mitchell Smith, president, CEO and director of Global Energy Metals, commented: “This option agreement with Zimtu provides a compelling pathway to unlock the mineral potential at Monument Peak while preserving meaningful upside for Global Energy Metals. The transaction aligns with our disciplined growth strategy — monetizing non-core assets for cash, equity and exploration investment, while retaining long-term exposure through a 1% NSR royalty and share ownership. proceeds will strengthen our balance sheet and support the evaluation of new growth opportunities.”

Under the option agreement, Zimtu, an arm’s-length party to the company, may earn a 100% interest in Global Energy Metals’ 50% ownership in Monument Peak by making a series of cash payments, share issuances and exploration expenditures, as outlined below (all amounts in Canadian dollars). Initial payment (closing): $50,000 in cash; issuance of 100,000 common shares of Zimtu (or its assignee) and payable within 90 days of TSX Venture Exchange approval.

If the option is assigned prior to closing, the share consideration will be adjusted to reflect a value of $100,000 in shares of the assignee at closing.

First milestone payment – Upon the earlier of: the first anniversary of closing; public announcement confirming completion of two drill holes on the project Zimtu (or assignee) will pay $150,000 in cash and issue shares having a deemed value of $150,000.

Second milestone payment – Upon the earlier of the second anniversary of closing; public announcement confirming completion of 10 drill holes Zimtu (or assignee) will pay $200,000 in cash and issue shares having a deemed value of $250,000.

Third milestone payment – Upon the earlier of the fourth anniversary of closing; public announcement of a new mineral resource estimate Zimtu (or assignee) will pay $250,000 in cash and issue shares having a deemed value of $250,000.

Zimtu (or its assignee) must incur a minimum of $1 million in direct exploration expenditures on the project within 12 months of closing, subject to permitting timelines and site access.

Should the option be assigned, the parties will enter into an investor rights agreement, under which Global Energy Metals will have the right to nominate one board member of the assignee, subject to Zimtu’s prior consent, for a period of 16 months from closing.

Upon exercise of the option, Global Energy Metals will retain a 1.0% NSR royalty on the project with 0.5% of the NSR may be repurchased by the optionee for $1 million within the first five years, or $2 million thereafter.

Any shares issued to Global Energy Metals under the option agreement will be subject to applicable resale restrictions. In addition, the company has agreed to a voluntary 12-month hold period on all shares received under the agreement.

The option agreement is non-binding and remains subject to the execution of definitive documentation and approval of the TSX Venture Exchange. There can be no assurance that the transaction will be completed as proposed or at all.

The Monument Peak project consists of 84 contiguous, unpatented lode mining claims totalling approximately 689.77 hectares. The project hosts two historical copper mines, Jackson and Hungry Hill, which saw limited production in the early 1900s.

Historical and modern exploration has confirmed the presence of high-grade copper-silver plus or minus gold mineralization along a 3+km northwest-southeast structural trend.

Notable results from prior programs include grab samples ranging from 1% to 20.9% copper and 3.4 to 305 g/t silver.

2021 sampling results include 5.61% Cu and 42.8 g/t Ag (sample 15140) as well as 4.63% Cu, 17.40 g/t Au and 175 g/t Ag (sample 151408).

These results are derived from historical and surface sampling and are not necessarily indicative of future mineral resources.

As demonstrated with the company’s current copper, nickel and cobalt projects in Canada, Australia, Norway and the United States, Global Energy is investing in exploring and developing prospective, scaleable assets in established mining and processing jurisdictions in close proximity to end-use markets.

Global Energy Metals is targeting projects with low logistics and processing risks, so that they can be fast tracked to enter the supply chain in this cycle. The company is also collaborating with industry peers to strengthen its exposure to these critical commodities and the associated technologies required for a cleaner future.