GLOBEX MINING ENTERPRISES INC. (TSX:GMX) (Frankfurt:G1MN) (OTCQX:GLBXF) is pleased to inform shareholders that Globex has optioned our advanced Magusi Mine property to Electro Metals and Mining Inc. currently an unlisted corporation.
The Magusi project consists of 153 claims and one mining concession totaling 5,663 ha (13,993 acres) in Duparquet, Hebecourt and Montbray townships, Quebec, north of Rouyn-Noranda and south of the village of Duparquet covering an area of approximately 15 km by 5 km. The property is underlain by a series of acid to intermediate volcanic rocks which strike east-west across the length of the property and host the previously mined Fabie Bay Deposit and unmined Magusi Deposit. The Magusi Deposit is a lens of massive and stringer sulphides having a length of approximately 500 m and extending to a depth of greater than 400 m. Massive and stringer sulphide thicknesses range up to 35 m but average 15 m. Mineralization consists principally of chalcopyrite (Cu), sphalerite (Zn), pyrite and pyrrhotite with gold and silver. There are numerous targets for additional exploration in the immediate areas around the Magusi and Fabie Bay deposits as well as along the 15 km length of the entire property package. Sulphide intersections are reported in historical drill holes in a number of areas along the length of the property.
The Magusi mining project is well advanced with roads, powerline, settling ponds, fresh water well, portal with corresponding start of the ramp (62m) and metallurgical testing complete. A 50,000 tonne bulk sample permit has been issued and is current.
A NI 43-101 report dated March 21, 2012, titled NI 43-101 Technical Report on the Mineral Resource Estimate for the Magusi Project, Abitibi Region, Canada for Mag Copper Ltd., by Bernard Salmon, Ing., and Holger Krutzelmann, P.Eng. of Roscoe Postle Associates Inc. reports the following resources:
|Area||Tonnes||Cu%||Zn%||Ag (g/t)||Au (g/t)|
|High Grade Copper||729,000||3.26||0.58||43.4||0.41|
|High Grade Zinc||580,000||0.39||8.57||42.1||2.34|
The report is available on Globex’s website. Metal prices used in the report are Copper US$3.50/lb., Zinc US$0.95/lb., Gold US$1,300/oz. and Silver US$21/oz. An exchange rate of $1 to $1 was used.
Agreement: Under the terms of the agreement, Globex will receive the following cash and share payments as well as the indicated minimum project expenditures in exchange for 100% interest in the Magusi Property subject to a 3% GMR:
Cash Consideration: Over a 48-month period $6,400,000 of which $1,000,000 is payable in the first 12 months ($250,000 on January 1, 2022, $250,000 at 6 months after signing and $500,000 at 12 months after signing).
Share Consideration: Over a 48-month period 7,000,000 shares or $4,800,000 worth of shares whichever is greater, 2,000,000 shares or $800,000 worth of shares, whichever is greater, is payable within the first 12 months.
Work Consideration: A total of $12,250,000 of property expenditures over 48-month including $2,000,000 of expenditures within the first 12 months.
Positive Feasibility Study: Delivery of a Positive Feasibility Study within 48 months.
Advance Royalty: $100,000 per year Advance Royalty commencing after 72 months until commercial production recoupable by Electro Metals and Mining from the first Gross Metals Royalty payments due to Globex.
Gross Metals Royalty: Globex shall retain a 3% Gross Metals Royalty (GMR) on all payable metals subject to a 1.5% buyback for $2,250,000 and a first right of refusal should Globex decide to sell the remaining 1.5% GMR.
Listing: Electro Metals and Mining Inc. plans to list its shares on a recognized North American Stock Exchange in 2022.
This press release was written by Jack Stoch, Geo., President and CEO of Globex in his capacity as a Qualified Person under NI 43-101.
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We acknowledge the [financial] support of the Government of Canada.