Globex Agrees to Sell Two Royalties for $13 million Cash and a Significant Equity Stake in Electric Royalties
ROUYN-NORANDA, Quebec, March 11, 2021 (GLOBE NEWSWIRE) — GLOBEX MINING ENTERPRISES INC. (GMX – Toronto Stock Exchange, G1MN – Frankfurt, Stuttgart, Berlin, Munich, Tradegate, Lang & Schwarz, L&S Exchange, TTM Zone, Stock Exchanges and GLBXF – OTCQX International in the US) is pleased to inform shareholders that it has agreed to sell its Mid-Tennessee Zinc Mines royalty to Electric Royalties Inc. (ELEC-TSXV) for the following consideration:
$250,000 for an exclusive 90-day due diligence and funding period by Electric Royalties. Should the transaction proceed per the terms agreed to below, this cash payment shall be deducted from the final cash portion of the purchase price indicated below. Should the transaction not proceed, Globex will keep this initial cash payment.Purchase Consideration Payable within 90 days:$13,000,000 in a single cash payment.14,500,000 Electric Royalties shares with a current market value of $5,220,000.$1,000,000 as a future cash payment should the price of zinc rise to or above a price of $2.00 USD per pound for at least 90 consecutive days.
In addition to the Mid-Tennessee Mines Zinc Royalty, Electric Royalties is acquiring a 1% Gross Metal Royalty on Globex’s 100% owned Glassville, New-Brunswick, manganese exploration property.This is the second transaction through which Globex has sold battery element royalties to Electric Royalties Inc. Globex currently holds 3,000,000 Electric Royalty shares and looks forward to increasing our position in this dynamic battery element oriented royalty company.Globex at present owns 192 assets including over 70 royalties, has more than $10,000,000 in cash and shares of other companies and no debt. At the projected completion of this transaction, Globex should have approximately $30,000,000 in cash and shares.In addition, Globex is currently working to finalize a number of potential property options to other parties.This press release was written by Jack Stoch, Geo., President and CEO of Globex in his capacity as a Qualified Person (Q.P.) under NI 43-101.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