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Globex Mining Holds Second Close Of Private Placement Financing, Raises Another $0.9 Mln

Globex Mining (TSE:GMX) (OTCQX:GLBXF) says it has held the second close of its private placement financing announced last month, for an additional $934,550 in funds.

The company issued 663,500 flow through shares at a price of $1.30 each, for proceeds of $862,550, and 72,000 common share at a price of $1.05 each for total proceeds of $75,600.

Globex issued the shares to "accredited investors" in Ontario and Quebec, it said.

It will use the new funds for exploration on its properties in Quebec and Ontario, as well as for working capital.

Casimir Capital and Marquest Asset Management are acting as co-lead agents for the private placement, with additional closings of the financing possible until December 6. The company said it could issue a maximum of $5.26 million in flow through shares, and a max of $637,500 in common shares - for total proceeds of around $5.9 million.

The maximum amount was previously $4.25 million.

Earlier this month, Globex Mining held the first close of the private placement financing, raising an increased total of around $3.3 million.

Also in November, Globex Mining acquired a 100 per cent stake in the former Joutel copper mine in Joutel township, northwestern Quebec. The mine produced 1.32 million tonnes grading 2.16% copper and 378,000 tons grading 8.88% zinc, to a depth of 365 metres, where it was believed that the ore body terminated against the shallowly dipping "upper contact of a batholith", Globex said.

The addition of the Joutel copper mine property to Globex's land holdings in the area, which include the 100% owned Eagle Gold and Poirier Mines and a large package of prospective claims, gives the company "a dominant position with excellent exploration potential" in the Joutel mining camp.

Globex is also in the midst of its proposed spin out of its subisidary Chibougamau Independent Mines (NYSE:CIM) to its shareholders. The company's shareholders approved the arrangement at a special meeting on October 19, with an affirmative vote of 99.95 per cent.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.