General European Strategic Investments Inc. Enters Into Binding Memorandum of Understanding with German Mining and Commodity Trading Concern HMS Bergbau AG

September 05, 2023 8:51 AM EDT | Source: General European Strategic Investments Inc.

Las Vegas, Nevada--(Newsfile Corp. - September 5, 2023) - GENERAL EUROPEAN STRATEGIC INVESTMENTS INC. (OTC Pink: GESI) (the "Company") is pleased to announce that through its subsidiary companies Laakso Minerals Oy ("Laakso") and ZB Capital AG, it has entered into a Binding Memorandum of Understanding (the "MOU") with HMS Bergbau AG ("HMS Bergbau"), for the creation of a joint venture company (the "JV Company") to explore and develop deposits of the strategic minerals nickel, copper, cobalt, and platinum group elements (PGE) on the Company's concessions in Finland. Laakso currently holds five exploration licenses which are fully approved, as well as two additional licenses relevant for the cooperation with HMS Bergbau which are advancing in the application process.

Transaction Highlights:

  • HMS Bergbau and Laakso will establish a new JV Company in a mutually agreed jurisdiction for operations and management of the joint activities;
  • Laakso will contribute and transfer its Finland exploration licenses relevant for the cooperation with HMS Bergbau to the JV Company;
  • HMS Bergbau has agreed to pay for all licensing fees, annual carrying costs and arrange funding for the exploration and development of the mineral licenses which are relevant for the joint activities;
  • HMS Bergbau will provide decades of valuable management, operational and technical experience through the use of its extensive international team of professionals;
  • HMS Bergbau will initially hold a 49% shareholding in the JV Company;
  • HMS Bergbau has the option to increase its ownership of the JV Company to 60%;
  • HMS Bergbau has the option to acquire 60% of all the other Laakso mineral rights which may be obtained in Finland at any time after the end of the first year of the creation of the JV Company;
  • HMS Bergbau has a right of first refusal in the event Laakso receives offers from third parties for its shares in the JV Company;
  • HMS Bergbau will have priority rights to market and sell the minerals produced from the potential future mining activities of the JV Company.

All parties have agreed to finalize the establishment of the new JV Company as expeditiously as possible upon completion of a customary due diligence process. Wolfgang Rauball, GESI's CEO, stated, "We are very proud to have been able to secure the technical and financial support of such a seasoned and respected industry operator as HMS Bergbau. This transaction is a win-win for all parties as HMS Bergbau realizes the opportunity provided by the fact that the deposits in question contain important strategic minerals and that Laakso's significant licenses are located in such a stable mining jurisdiction as Finland." Wolfgang Rauball also stated, "This transaction is important for GESI shareholders as it provides a clear path for advancement of the Company's substantial mineral rights in Finland without shareholder dilution."

Dennis Schwindt, CEO of HMS Bergbau, remarked "We are very pleased to have the opportunity to enter into this cooperation with Laakso in Finland. Nickel, copper, cobalt, and platinum group elements are all important strategic minerals of great interest for Europe and around the world. The exploration, development and mining of strategic minerals is the core of HMS Bergbau's diversification strategy which has been adopted by HMS Bergbau in early 2022."

About HMS Bergbau AG:

HMS Bergbau AG is a leading independent diversified natural resources mining and commodity trading company headquartered in Berlin, Germany, that is engaged in mining, mineral development and related commodity trading activities in Asia, Africa and Europe. The company is actively expanding its production and logistical solutions activities.

Shares of HMS Bergbau AG are listed on the Basic Board of the Frankfurt Stock Exchange in Germany.

Forward Looking Statements:

This release includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934. Such statements include any that may predict, forecast, indicate, or imply future results, performance or achievements, and may contain the words "estimate", "project", "intend", "forecast", "anticipate", "plan", "planning", "expect", "believe", "likely", "should", "could", "would", "may" or similar words or expressions. Such statements are not guarantees of future performance and are subject to risks and uncertainties that could cause the Company's actual results and financial position to differ materially from those in such statements, which involve risks and uncertainties, including those relating to the Company's ability to grow. Actual results may differ materially from those predicted and any reported should not be considered an indication of future performance. Potential risks and uncertainties include the Company's operating history and resources, together with all usual and common economic, competitive, and equity market conditions / risks.

Robert Seguin, V.P., Investor Relations
General European Strategic Investments Inc.

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