Globex Mining Enterprises (TSE:GMX) (OTCQX:GLBXF) and subsidiary Chibougamau Independent Mines Inc. (CIM) Wednesday said that a $1.2 million investment by Jack Stoch Geoconsultant Services Ltd. will ensure that CIM can trade on the TSX Venture Exchange.
CIM raised $1.4 million in "flow-through" units, noting that the TSX-Venture required it to have a minimum of roughly $1.2 million in working capital at listing.
Jack Stoch Geoconsultant Services, owned by Jack Stoch, president and CEO of Globex and CIM, has subscribed for "hard cash" units of CIM in that amount.
Jack and Dianne Stoch said in a recent release that they are “prepared to ensure their advancement and that of CIM” with their investment and that they view CIM's projects as “among the best in the Province of Quebec”.
With its investment, Jack Stoch Geoconsultant Services will have a roughly 19-per-cent equity stake in CIM.
Globex noted that neither the Quebec Government funds nor the Quebec union fund, set up specifically to support exploration in Quebec, participated in the CIM financing.
“We find this perplexing especially when we were told that, at least in one case, that they were surprised by the high quality of our projects,” the company said in a statement.
Earlier this week, CIM announced it had raised about $2.6 million at the closing of its previously-announced private placement.
The company said that the current financial uncertainty both in Europe and North America and “weak performance” of the junior sector made it impossible for CIM to raise the complete $10 million amount it originally announced in October, 2012.
“Several investment funds have expressed an interest in CIM but have requested that we re-contact them in early 2013 once their new 2013 funds are funded,” it added.
Globex said that as previously announced, the TSX-V has already conditionally approved CIM's listing application. The start of trading of CIM is expected this month, on compeltion of 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.
CIM said it will immediately initiate several of its exploration programs, including drilling of the historical non-NI 43-101 Berrigan gold, silver, zinc zone immediately north of the town of Chibougamau, Quebec.
The initial drill program on the Berrigan property will be focused on confirming the previously drilled shallow, historical zinc zone, where drilling from the 1940's to the 1960's largely ignored the “numerous and very significant” gold and silver values.
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.