Globex Mining Enterprises (TSE:GMX) reported on Tuesday that it has received 13.5 million shares of Mag Copper as partial payment for its Magusi-Fabie polymetallic mine property situated north of Rouyn-Noranda, Quebec.
The Magusi River and Fabie Bay massive sulphide deposits are part of a large optioned block totalling 1,952 hectares covering the Hebecourt Township, north of Rouyn-Noranda in Dufresnoy Township, in Quebec.
The shares issued to Globex have a cash value of $4.72 million as of yesterday’s closing price. The 13.5 million shares, which reflect a 41% stake, were issued by Mag for $0.125 a share, taking into account the one-for-five share consolidation, Globex said.
The Canadian-based company said it could further invest in Mag Copper, depending on price, availability and general market conditions.
Under the terms of the agreement between the two companies, Mag Copper can earn a 100% interest in the Magusi-Fabie mine property by issuing 13.5 million of its shares and by making cash payments totalling $1.75 million over a three-year period, under the terms of its agreement.
In addition, Mag must incur $10.25 million in expenditures on the property within four years, and reserve a 3% gross metal royalty on production for Globex, of which 1% may be purchased for $5 million.
Globex is a development-stage Canadian mining exploration company with a North American portfolio of gold, copper, zinc, silver, platinum, and rare earths properties. The company is currently exploring its Cote copper-nickel property and Colnet Lake properties, located west of Rouyn-Noranda.