Globex Mining Enterprises Inc. (TSX:GMX, OTCQX:GLBXF), the mineral property bank, told investors that it has optioned its recently acquired Lac Escale property in northern Quebec’s James Bay area to Brunswick Exploration Inc.
Quebec-based Globex noted that the Lac Escale property consists of 81 cells which encompass several mineralized areas including the following gold and/or base metal zones: Lac Sirios Nord, Lac Sirios Sud, Eade Nord, Centre-2, E04-4, Deuxième Chance, Lac Éléana and Bouchard.
In addition to the potential for gold and base metals, it said the property has potential for the discovery of lithium mineralization. Boulders containing spodumene a lithium-bearing mineral are known to occur in the area, it added.
READ: Globex Mining says Orford mobilizes drill to Joutel Eagle property in Quebec
Under the option agreement, Globex said Brunswick will pay it $500,000 over three years, half in cash and half in Brunswick shares, and undertake $1 million in exploration on the cells.
If Brunswick completes the cash and work commitments, it will earn 100% interest in the property subject to Globex retaining a 3% gross metal royalty of which 1% may be purchased by Brunswick for $1 million. The royalty will also apply to any mineral rights acquired by either party within one kilometer of the current claim boundaries, Globex said.
Lastly, should Brunswick earn 100% interest in the property, at the fifth anniversary of the coming into force of the Royalty Agreement or following total expenditures of $4 million, whichever comes first, it will commence paying Globex an annual $100,000 advance royalty payment deductible from production.
Globex Mining Enterprises is a Canada-based exploration and project generator/property bank, which seeks to create shareholder value by acquiring mineral properties.
Contact the author at stephen.gunnion@proactiveinvestors.com