- Globex (GMX) sells two royalties for C$13 million and an equity stake in Electric Royalties (ELEC)
- The equity stake involves 14,500,000 Electric Royalties shares with a current market value of C$5,220,000
- Electric Royalties is focused on operating mines and acquiring royalty interests in advanced-stage mineral projects
- Globex Mining Enterprises explores for base and precious metals primarily in North America
- Electric Royalties (ELEC) is up 11.11 per cent and is currently trading at C$0.40 per share
- Globex (GMX) is up 26.39 per cent, trading at C$0.91 per share at 4:15 pm EST
Globex (GMX) sells two royalties for C$13 million and an equity stake in Electric Royalties (ELEC).
Globex will sell its Mid-Tennessee Zinc Mines royalty to Electric Royalties for the following:
- C$13,000,000 in a single cash payment
- 14,500,000 Electric Royalties shares with a current market value of C$5,220,000
- C$1,000,000 as a future cash payment should the price of zinc rise to or above US$2.00 per pound for at least 90 consecutive days
In addition to the Mid-Tennessee Zinc Mines royalty, Electric Royalties is acquiring a 1 per cent gross metal royalty on Globex’s Glassville, New Brunswick manganese exploration property.
Before the sale can proceed, Electric Royalties must pay Globex C$250,000 for an exclusive 90-day due diligence and funding period.
Globex currently holds 3,000,000 Electric Royalties shares and intends to increase its position in the company.
Once this transaction is complete, Globex should have approximately C$30,000,000 in cash and shares.
Globex Mining Enterprises explores for base and precious metals primarily in North America. At present, it owns 192 assets including over 70 royalties.
Electric Royalties (ELEC) is up 11.11 per cent and is currently trading at C$0.40 per share as of 3:15 pm EST.
Globex (GMX) is up 26.39 per cent, trading at C$0.91 per share at 4:15 pm EST.
