Globex Mining (TSE:GMX) (OTCQX:GLBXF) has obtained a final order from the Quebec Superior Court to spin out shares of its Chibougamau Independent Mines (CIM) subsidiary to its shareholders.
Completion of the spin out is conditional on CIM closing its $10 million private placement financing first announced in October, which is being co-led by Casimir Capital and Marquest Capital Markets.
Globex said that as previously announced, the TSX Venture Exchange has already conditionally approved CIM's listing application. The start of trading of CIM on the exchange is also conditional on the placement, and standard listing documents, among other items.
All the funds from the private placement will be used for the 10, 100-per-cent-owned, advanced properties in the Chibougamau area.
Globex, a development-stage, mining exploration company, has a North American portfolio of properties with gold, copper, zinc, silver, platinum, palladium, uranium, rare earth, nickel, magnesium and talc potential.
Earlier this month, the company started prefeasibility study drilling at its Timmins talc magnesite property in Timmins, Ontario. The campaign is made up of around 46 drill holes, or 7,000 metres. The majority of holes in the program will be infill, in order to elevate the first 20 years of potential resource to mineable reserve.
The preliminary economic assessment report, released in March of this year, was based on an initial 20-year period of mining 500,000 tonnes of ore per year, with total projected sales of $2.6 billion and an after-tax internal rate of return of 20 per cent.
To advance the project to prefeasibility study stage, Globex is completing infill and geotechnical drilling to upgrade the first 20-year resource to a 20-year reserve, which will be reported in a new NI 43-101 report. The company has also undertaken a series of larger scale tests to further improve recovery costs and product purity, it said.
Globex is aiming to become a major supplier of "high quality" talc and magnesia to the North American market. The Timmins project was acquired in 2000 by Globex, who now holds a 90-per-cent stake, with the remainder held by Drinkard Metalox.