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Globex Mining closes two additional property deals to raise $1.7M in cash

After selling the properties, debt-free Globex is now sitting on a treasury of about $10 million

Globex Mining Enterprises Inc. - Globex Mining Enterprises Inc closes on two additional property deals
The group also noted that the price of zinc has surpassed US$1.10 per pound, which means Globex’s Mid-Tennessee royalty will increase from 1% to 1.4%

Globex Mining Enterprises Inc (TSX:GMX) (OTCMKTS:GLBX) told shareholders Tuesday that it has closed on two additional property deals to raise $1.7 million in cash.

In the first case, the company said it has sold its 100% interest in all 16 cell fractions of the Sigma East Property and one cell fraction of the Sigma 2 property, to Eldorado Gold Quebec Inc, a subsidiary of Eldorado Gold Corporation (NYSE:EGO), for a single cash payment of C$1.6 million. 

Globex said historical drilling intersected erratic gold mineralization on several of the cells.

READ: Globex Mining welcomes Radisson Mining's acquisition of a 100% interest in Renforth Resources’ New Alger Gold Mine in Quebec

In the second disposal, the company said it sold six cells in the Windfall mining camp to Osisko Mining Inc (TSX:OSK). One of the Windfall area cells is on strike and to the east of Osisko’s Windfall gold deposit, three are further southeast and off the main structure, and two are near to the southwest and on strike of the Black Dog gold deposit. 

In exchange for the cells, Osisko has paid Globex $100,000 in cash. Globex said it has retained a 2% gross metal royalty.

Combined, the deals add more than $1.7 million in cash to Globex’s treasury bringing its cash and shareholdings to about $10 million. Globex has no debt and owns all its assets including 188 exploration properties, royalties and real-estate.

Globex also said it will receive 53,846 Nickel and Technologies Limited shares (book value $35,000) as part of a previous option of its Marbridge South nickel property.

The company also noted that the price of zinc has surpassed US$1.10 per pound, which means Globex’s Mid-Tennessee royalty will increase from 1% to 1.4%.

Contact the author: [email protected]

Follow him on Twitter @PatrickMGraham

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Price: 0.67 CAD

TSX:GMX
Market: TSX
Market Cap: $36.86 m
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