Significant Transaction Completes Another Successful Year of Activity for Globex

As 2023 winds down, many junior mining companies are quietly winding down activity. In contrast, Globex Mining Enterprises Inc. (CA: GMX – $0.95 & US: GLBXF – $0.72 & GER: G1MN – €0.63) was among the most ambitious participants in this sector throughout the year. It is fitting then that the Company has reported one more significant transaction prior to year end. This week, the Company announced a property deal, vending several Quebec gold projects to O3 Mining Inc [OIII].

The transaction involves a total of 156 claims that are assembled in eight distinct properties clustered along a prolific structural corridor in the Val-d’Or district. Historical drilling work revealed gold mineralization at some of the properties. There are also confirmed mineral showings of base metals and rare earth elements encountered through sampling at surface outcrops.

Globex was paid a total of $150,000 in cash plus 1,185,897 common shares of O3 valued at $1,850,000. Another important aspect to this deal is the royalty leverage. Globex retains a 2.5% GMR on 104 of the claims and a 1% GMR on the remaining 52 claims that had only been recently purchased by Globex prior to the transaction. O3 may purchase 40% of the GMR on the 104 claim package for a total cash consideration of $1,500,000. The retained royalty leverage on these properties then represents a catalyst to build value for Globex shareholders if the partner company is successful.

The deal is a win for shareholders. Globex concludes the year with a stronger balance sheet from the cash and share payments. Meanwhile it no longer bears the carrying costs for a large portfolio of property interests sold in the transaction. Globex retains attractive royalty leverage to benefit from the exploration funded by O3 in the years ahead.

Option Partner Emperor Metals Reports Additional Assay Results for Duquesne West Project

In other news, Emperor Metals [AUOZ] presented results from two more drill holes from the Duquesne West property. Emperor recently completed a program of 14 drill holes for a total of 8,579 meters. The company reported positive assay values from five drill holes previously.

Once again, the drilling successfully intercepted wide intervals of attractive gold mineralization, highlighted by a section of 5.6m bearing an average of 7.5 g/t gold. This was part of a larger interval spanning 13.2m from Hole DQ-23-09 with an average grade of 3.75 g/t gold. The gold zone was encountered within near-surface mineralization and exceeds the average grade of the deposit.

Emperor has presented new gold resources zones encountered both along strike and below the historical resource zones. The mineralized system extends for 1.8km along strike. The latest assays reported add to the potential near-surface gold endowment of the project. The deposit remains open for further expansion.

However, the company has also developed a conceptual open-pit mining shell based on near surface resources. This envisions a potential mining scenario extending to a depth of 400m and up to 800m in width. Emperor is also investigating near-surface potential mineralization that may have been overlooked by previous operators. Samples selected from more than 3000m of historical drill core have been submitted for assaying to follow up on this opportunity. The speculative outlook for the project remains attractive as further results are pending.

Emperor Metals secured the Duquesne West property through an option deal involving Globex in October 2022. A significant gold resource within the property area was established by previous operators, estimated at more than 850,000 ounces of gold. Globex holds a significant position of Emperor shares that were issued in structured transaction payments, plus a retained 1.5% GMR on the property.

Lithium Discovery Potential Confirmed by Option Partner Infinicio Metals Corp.

Lithium exploration activity continues to remain a priority in Quebec. Globex is positioned as a beneficiary of this trend through previously reported transactions with companies actively exploring for lithium resources. This week, option partner Infinico Metals Corp [INFM] reported the discovery of lithium at its Dalhousie project. Surface grab samples collected from pegmatite outcrops within the property area were sent for assay, confirming the presence of lithium at these showings. The results included high-grade values up to 4.45% Li2O. While grab samples are not necessarily indicative of the potential resource magnitude, the attractive lithium values certainly demonstrate the potential for further discovery.

Infinico (formerly called Burin Gold Corp) secured the project through a four year option deal with commitments to issue structured payments of cash and shares to Globex, along with at least $5 million in exploration activity.

Globex retains a 3% GMR on the property. Globex also controls land holdings in proximity with lithium discovery potential that may become more attractive if Infinico achieves further success at Dalhousie. There is also potential for discovery of nickel, copper and cobalt resources based on historical showings within the Dalhousie property area, highlighting the diversity of the exploration opportunity for this project.

Royalty Partner Brunswick Exploration Reports Impressive Lithium Assay Results

Brunswick Exploration [BRW] also reported high-grade lithium results at another property acquired from Globex in a previously reported transaction. Brunswick has been aggressive to follow up on the discovery potential at its Lac Escale (Mirage) lithium project, recently completing a program of 36 drill holes.

Pegmatites were encountered in 33 of these drill holes along a strike length of 1.5 kilometers delineated within the North, Central and South Zones. Bonanza lithium grades were reported in the North Zone, including a section of 2.57% Li2O over an interval of 25.8m in one drill hole. Another drill hole in this zone delivered an interval of 24.8m with an average grade of 2.18% Li2O. Meanwhile the South Zone also provided attractive discovery results, highlighted by an interval of 16.2m bearing an average of 2.75% Li2O.

These results are encouraging based on the continuous, wide intervals of high-grade lithium. However they are also appealing as the resource zones have been encountered at relatively shallow depths. It is also notable in that the breakthrough discovery is at an early stage, and assays for 23 more drill holes remain to be reported. The potential magnitude of this emerging lithium deposit may amount to a much more significant event as the full results are in hand.

The enormously successful start to this exploration effort validates the decision by Brunswick to accelerate its purchase option. The transaction reported in January of this year afforded Brunswick a four year term to complete the acquisition. However Brunswick completed the purchase last month, issuing the full payment of shares and cash to Globex.

Globex retains a 3% GMR on the Lac Escale property holdings, and Brunswick has committed to an advance royalty payment obligation of $100,000 per year starting on the fifth anniversary of the transaction.

Conclusion

The deal announced this week with Q3 illustrates the appeal of the Globex transaction strategy. O3 is led by a highly respected and competent management with a track record of successful exploration. The company is well funded to enable a long term comprehensive exploration at this cluster of acquired properties. While the net transaction value of $2 million is noteworthy, most of that is accounted for with payment in shares of the acquiring company. Positive results achieved by O3 in the field may then increase in the value of that share position held by Globex. The prospect to build value in the portfolio of shares of its partner companies has been a powerful catalyst contributing to trend of increasing value for shares of Globex itself.

The positive results achieved independently by other Globex partners also build shareholder value. Infinico has rapidly delivered promising lithium targets following the sampling work completed on surface pegmatite showings. Meanwhile Brunswick has achieved an attractive lithium discovery at Lac Escale that motivated the company to expedite the purchase option on the project. Globex is a beneficiary of cash and share payments for these projects, while remaining fully leveraged to future success with the retained royalty leverage on the properties. In addition, Globex controls other property interests in proximity to the action.

The updates presented this month serve as a case study for another successful year for the Globex strategy. The market value of the Company is once again trending higher based on the positive results achieved by many option and royalty partners, and the strong financial position that has been established through many lucrative transactions in recent years. More importantly, the cumulative upside of so many successful transactions currently in process builds the prospect for additional growth in the year ahead. Smallcaps Recommendation: BUY.

Smallcaps.us Advice: Buy	Price Target: $2.87	Latest Company Report (pdf)
For important disclosures, please read our disclaimer.