Globex Mining Enterprises Inc. (TSX:GMX) (OTCQX:GLBXF), the mineral property bank, has welcomed news announced on Monday that Radisson Mining Resources Inc. (CVE:RDS) is acquiring a 100% interest in Renforth Resources Inc.’s (CSE:RFR) New Alger Gold Mine property near Cadillac, Quebec.
Under the agreement, Radisson will pay Renforth 12 million Radisson shares (current value $4,320,000), pay $0.5 million in cash, subscribe for 24 million Renforth shares as part of a $3.24 million charity flow through private placement of Renforth shares and, in the future, potentially make $1.5 million in cash contingent payments.
READ: Globex Mining Enterprises sells three northern Quebec properties to Starr Peak Exploration Ltd
The transaction consolidates the O’Brien, Kewagama and New Alger gold mine properties into one continuous package covering some 5 kilometres of the gold localizing Cadillac Break with several NI 43-101 resources.
In a statement, Globex said it is pleased with the transaction and pointed out to its shareholders that the company currently owns 9,550,000 shares of Renforth.
It also holds a 1% Net Smelter Royalty (NSR) on the New Alger Gold Mine property as well as a 2% NSR on the Kewagama Gold Mine portion of the O’Brien/Kewagama property and a 3% Gross Metal Royalty on Renforth’s flagship Parbec gold property.
Radisson is currently drilling on the O’Brien/Kewagama property and the acquisition of the New Alger gold mine property extends the exploration potential of their successes there along the prolific Cadillac Break.
On Monday, Globex Mining itself announced that it had sold three properties in northern Quebec to Starr Peak Exploration Ltd (CVE:STE) (OTCMKTS:STRPF) for cash and shares.
The firm said it will receive a total of C$150,000 in cash - C$50,000 on signing, C$50,000 at six months and C$50,000 after one year. It will receive 1.2 million Starr Peak shares and a 2.5% Gross Metal Royalty (GMR), 1% of which may be bought back by Starr Peak prior to commercial production for C$1.5 million.
Contact the author at jon.hopkins@proactiveinvestors.com