Globex Mining Enterprises Inc. (TSX:GMX) OTCMKTS:GLBXF) told shareholders that it has sold a number of non-core specialty mineral royalties to a new energy centric royalty company, Electric Royalties Ltd. (CVE:ELEC).
In exchange for the royalties or portions of royalties, Globex will receive $500,000 and 3,000,000 Electric Royalties shares, representing 6.93% of Electric Royalties issued capital.
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Should the Authier Lithium deposit reach commercial production within 6 years of agreement, Globex added, it will receive an additional $250,000 cash payment adjusted for inflation.
Included in the transaction are the following:
- 1% GMR (Vanadium Only) of Globex’s 1% Gross Metal Royalty(GMR) on the Mont Sorcier Iron-Vanadium-Titanium deposit, east of Chibougamau, Quebec. Globex retains the 1% GMR on the Iron and Titanium and any other minerals recovered
- 0.5% GMR of Globex’s 1% GMR on the claim centered upon Sayona’s Authier Lithium deposit near La Motte, Quebec
- 0.5% GMR of 2% GMR and 2% GMR on a number of claims nearby the Authier Lithium deposit
- 2% GMR on two Lithium exploration projects (Chubb & Bouvier), located north of La Motte, Quebec
- 2% GMR of Globex’s 3% GMR on the Battery Hill Manganese deposit in New Brunswick
In a statement, Globex said it is "pleased to be reaping immediate benefit from these assets and expects to partake in the upside from both our retained portions of royalties on these assets and the growth of Electric Royalties".
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