Globex Mining Enterprises Inc. (TSX:GMX, OTCQX:GLBXF) told investors that Electro Metals and Mining, a private Canadian corporation which optioned the Magusi polymetallic project located 55 km northwest of Rouyn-Noranda, Quebec in 2022 from Globex, has signed a non-binding letter of intent with capital pool company Shine Box Capital Corp under which the parties will combine their business operations.
Globex said the reverse takeover of Shine Box by Electro is subject to Electro completing a financing to advance the Magusi deposit toward production and to undertake exploration on the large claim package.
According to Globex, Electro noted in February: “The Magusi project extends to surface and could lend itself to a quarry type of operation. With nearby processing facilities and excellent road access, Electro Metals believes the Magusi project is ideal for evaluating the potential to move the project into production in the near term.”
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“Once financed, work will begin immediately with infill drilling, expansion drilling and advanced metallurgical test work. Should the results prove positive, the company will re-apply for a modification to its existing bulk sample permit and move directly into preparing to extract industrial scale samples for processing at nearby facilities,” Electro continued. “Should this all prove positive, Electro proposes to mine the shallow parts of the deposit and continue assessing the potential to develop the deeper copper–rich portions.
“Based on its re-evaluation of the FMP during 2022, Electro has identified five additional exploration targets to test on the property," Electro said. "These deposits typically occur in clusters and data review suggests ongoing prospectivity.”
The Magusi property consists of 148 claims and one mining concession totaling 5,847 hectares (14,448 acres) in Duparquet, Hebecourt and Montbray townships, Quebec.
Under the revised terms agreed to on October 4, 2022, Globex said the transaction, if completed, will generate $6.55 million cash and 7.5 million Electro shares payable to Globex and $12.6 million in work all over a four-year period as well as a 3% gross metal royalty (GMR), 1.5% GMR purchasable for $2.25 million.
“Globex is pleased that it looks like the project will be moving forward due, in part to copper and zinc now being deemed critical metals,” the company concluded.
Globex is a Toronto Stock Exchange, Frankfurt and OTCQX-listed corporation with a diversified North American portfolio of mid-stage exploration, development and royalty properties containing precious metals, base metals, specialty metals and minerals, and industrial minerals and compounds.
Contact the author at stephen.gunnion@proactiveinvestors.com