ROUYN-NORANDA, QUEBEC--(Marketwired - Feb 4, 2015) - GLOBEX MINING ENTERPRISES INC. (GMX.TO) (FRANKFURT:G1M) (OTCQX:GLBXF) is pleased to inform shareholders that it has signed a Letter of Intent (LOI) with Renforth Resources Inc. (CSE:RFR) whereby Renforth may earn 100% interest in Globex's Parbec Gold Property located 6 km northwest of the large Canadian Malartic open pit gold mine (Agnico Eagle Mines Limited and Yamana Gold Inc.) and adjoining the former East Amphi Gold Mine, all located on or near the gold-localizing Cadillac Break.
The Parbec Gold Property has received extensive surface drilling and underground exploration via the driving of a 580 m ramp into the gold zone. An historical resource estimate was outlined on the property. (Historical resources have been prepared prior to the development of National Instrument 43-101 and should not be relied upon.)
See short report on the Parbec property at http://www.globexmining.com/properties.php
Under the agreement, Renforth may earn 100% interest in the property in exchange for $4 million in exploration expenditures, $550,000 in cash payments and 2 million Renforth shares over 4 years. In addition, Globex will retain a sliding scale Gross Metal Royalty (GMR) based upon the price of gold such that Globex will receive 1% GMR at a gold price below $1,000/oz, 1.5% GMR at a gold price greater than $1,000/oz and less than $1,200/oz and 2% GMR at a gold price equal to or greater than $1,200/oz. In addition, an advance GMR of $50,000 per year will be payable commencing at year eight should the mine not be at production at that point in time.
Renforth has committed to a minimum of $100,000 in cash payments, the issuance of 750,000 shares and the performance of $350,000 in exploration expenditures over the first 18 month period.
The Parbec Gold Property consists of 11 cells totalling 229 hectares in Malartic Township, Quebec.
Forward Looking Statements
Except for historical information, this news release may contain certain "forward looking statements". These statements may involve a number of known and unknown risks and uncertainties and other factors that may cause the actual results, level of activity and performance to be materially different from the expectations and projections of Globex Mining Enterprises Inc. ("Globex"). No assurance can be given that any events anticipated by the forward-looking information will transpire or occur, or if any of them do so, what benefits Globex will derive therefrom. A more detailed discussion of the risks is available in the "Annual Information Form" filed by Globex on SEDAR at www.sedar.com
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Foreign Private Issuer 12g3 – 2(b) |
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CUSIP Number 379900 50 9 |
41,243,755 shares issued and outstanding