Globex Mining Enterprises Inc said its portfolio company NSGold Corporation has agreed to be acquired by Atlantic Mining NS Inc (Atlantic Gold Corporation), a subsidiary of Australian gold miner St Barbara.
Atlantic will acquire all of the issued and outstanding shares of NSGold at a price of $0.40 per share in cash.
Globex currently owns 1,745,408 NSGold shares, which will net the resource company a gain of $698,163.20.
READ: Globex Mining Enterprises options land package in the Joutel camp in Quebec to Orford Mining Corp
In addition, Globex holds a 2% gross metal royalty on the Mooseland gold mine in Nova Scotia. Mooseland contains an inferred resource of 3,454,000 tonnes at an average diluted grade of 4.71 grams per tonne for 523,000 ounces of gold.
As per the term sheet, each issued and outstanding share of NSGold will be exchanged for one redeemable preferred share of the amalgamated company, which will immediately be redeemed for $0.40 cash per share. The total consideration is approximately $7.9 million.
Globex has a diversified North American portfolio of mid-stage exploration, development and royalty properties containing precious and base metals.
The company explores on its own account and options many of its projects to other companies, which pay Globex cash, shares and a royalty and undertake extensive exploration in order to earn an interest in Globex's projects.
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