Receipt of Multi-Million Dollar Cash Payment Highlights Globex Update on Activity of Royalty Partners

Globex Mining Enterprises Inc. (CA: GMX – $0.95 & US: GLBXF – $0.69 & GER: G1MN – €0.65) has provided an update on activity underway by four of its royalty partners.

Established senior miner Agnico Eagle Mines Limited [AEM] controls a large portfolio of advanced mineral exploration properties, including a cluster of property claims in Dasserat and Beauchastel Townships in Quebec that had been acquired in a transaction with Globex. Also, IAMGOLD Corporation [IAG-NYSE, IMG-TSX] owns the producing Fayolle Gold Mine Property located in Clericy township, Quebec. Another Globex royalty property holding in the James bay area of northern Quebec is comprised of the Lac Escale lithium project is held independently by partner Brunswick Exploration Inc [BRW-V]. Meanwhile, royalty partner Starr Peak Mining Ltd has announced that it will resume work at the Normetal/Normetmar mining project, which it had acquired from Globex in August 2020.

Similar to most other deals arranged by Globex, these transactions involved significant payments of cash and shares to the Company. Globex also retains royalty leverage for each of these properties which may subsequently contribute attractive revenue streams if the projects are taken into production.

Agnico Eagle Issues Significant Property Payment to Globex

Yamana Gold acquired a large package of prospective mining claims in the vicinity of the mining center of Rouyn-Noranda from Globex in 2021. These holdings included strategic claims comprising the Francoeur/ Arntfield/ Lac Fortune project, including and surrounding historic mines in the district. In addition, a group of 30 claims located nearby in Beauchastel and three claims near the Canadian Malartic mine were sold in a $15 million blockbuster transaction. Later, Agnico Eagle acquired many of the assets controlled by Yamana, including the properties vended by Globex. Agnico Eagle is considered one of the most successful mining companies operating in Canada.

The terms of the original transaction involved structured payments due on each anniversary for a period of four years. Globex reported this month that Agnico Eagle has issued the current payment of $3 million in cash pursuant to its obligation. Combined with the earlier payments under the transaction terms, Globex has now been paid $8 million in cash. In addition, Globex was issued shares of Yamana that were converted into 24,639 shares of Agnico Eagle and 105,074 shares of Pan American Silver following the acquisition by Agnico Eagle. These shares are worth more than $5.1 million based on recent market prices.

Moreover, Globex retains a 2% GMR on all of the property claims involved in the transaction. Based on the clout of Agnico Eagle as a significant mining company in the region, the potential that mineral resources outlined within the claims groups may eventually be consolidated as part of an active mining operation is enhanced. This would then generate significant additional royalty revenues payable to Globex.

Globex Receives Record Fayolle Royalty Payment

Globex received another quarterly royalty payment from IAMGOLD Corporation. This is based on ongoing gold and silver production achieved from an open-pit mine at the Fayolle Property in Quebec. The payment for production achieved in the first quarter of 2024 was $363,923.08, or approximately $125,000 more than the $238,794.89 October to December 2023 quarterly payment received in March 2024.

Per information contained in the NI 43‐101 Technical Report and Mineral Resource Estimate of the Fayolle Gold Project published by Monarch Gold in 2019, the Fayolle deposit has a Measured and Indicated Resource of 706,400 tonnes grading 4.89 g/t Au based upon a gold price of $1,300 per ounce.

Globex retains a two percent Net Smelter Royalty on the Fayolle Property. Moreover, Globex has a 2% NSR on the adjoining Destorbelle Gold Property to the west and owns 100 percent the Victoria Gold property to the southeast and east, both of which have gold mineralization in drill holes and/or in surface exposures.

Aggressive Exploration by Royalty Partners

The Lac Escale claims group was optioned in January 2023 to Brunswick Exploration Inc. Brunswick immediately launched a drilling program and achieved successful results that were reported that summer. The caliber of this property holding was of such interest in fact that Brunswick opted to complete the full acquisition shortly thereafter.

Globex has received the full payment of $500,000 in cash and shares for the original option deal and now retains a 3% GMR interest. This is becoming more attractive as Brunswick continues successful exploration at the project. Earlier this month, Brunswick reported another series of drill core assay results including a high-grade interval spanning 69.3m bearing 1.64% Li2O. Another drill hole yielded a section of 28.3m with an average grade of 1.17% Li2O.

Many other attractive resource zones were encountered in this program. Some of the drill holes encountered multiple resource zones stacked further to depth. The deposit remains open in all directions. The expanding scale and high-grade nature of this project continues to evolve. New discovery targets have been outlined. Brunswick is planning follow up work for a summer program.

Finally, royalty partner Starr Peak Mining is also gearing up for additional field work this summer, at its Normetal/Normetmar project. This will follow up new targets identified by recently completed geochemical and geophysical surveying activity. A total of 12 target areas have been identified. Starr Peak has already delivered successful drilling programs in prior exploration at the property. Additional drilling is expected to commence in the months ahead. Globex retains a 2.5% GMR for the Normetal/ Normetmar claims, of which 1% may be repurchased by Starr Peak for $1.5 million. Globex also holds a 1% GMR on the Normetal Extension claims.

Conclusion

The up-front payments to Globex as these projects are vended also amount to a significant value proposition for Globex shareholders. In addition, royalty leverage is attractive because it is held in perpetuity. Even as subsequent transactions may be completed that transfer ownership of specific properties to new companies, the underlying royalty interests remain intact.

It is not uncommon for a project to evolve through several iterations of progress under different companies over many years. However, the progress achieved by royalty partners to outline resources may build the value proposition for these projects and eventually lead to mine development. The exploration commitment and capital spending priorities of third-party companies provides the prospect for a secure revenue stream that may be realized in the future. Globex holds many such royalties in various stages along the development curve.

Globex has prospered under the project generator business model as additional transactions are completed each year and the portfolio of royalty partners has continued to grow. Smallcaps Recommendation: BUY.

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