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Globex Mining Receives TSX-V Approval To List CIM Shares, Financing To Begin

Globex Mining Enterprises (TSE:GMX)(OTCQX:GLBXF) says it has received conditional approval from the TSX Venture Exchange to list its subsidiary Chibougamau Independent Mines (NYSE:CIM) on the exchange as it completes the proposed spin-out.

With the approval now in hand, CIM will begin the $10 million private placement financing it announced in October. All the funds will be used for the ten, 100 per cent-owned, advanced properties in the Chibougamau area.

The private placement will consist of up to 10.46 million "Quebec flow-through" units at a price of 65 cents per unit, and 6.4 million "hard dollar" units at a price of 50 cents each.

Every flow through unit is made up of one flow through share and one half of a share purchase warrant, while each hard dollar unit consists of one common share and one half of one share purchase warrant.

Each whole warrant allows the holder to buy another common share at a price of 80 cents for a period of one year from closing.

The closing of the offering is conditional on Globex completing the spin out of CIM shares to its shareholders.

Last week, Globex Mining said it held the second close of its private placement financing announced last month, for an additional $934,550 in funds. It will use the new funds for exploration on its properties in Quebec and Ontario, as well as for working capital.

The company said it can 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. Earlier this month, Globex 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.

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