Strong Partner Companies Build Value for Globex Shareholders

Successful exploration activity is the priority for the junior mining sector. Those juniors that are effective to present discoveries and expand resources are usually the best performing stocks in the sector. Perhaps the biggest challenge facing many of the junior explorers in this current market climate is the difficulty to raise funding to support active exploration projects. After all, sustaining a comprehensive exploration program requires a large amount of money. In this regard, a mature junior company is more likely to secure funding even during difficult market environments.

Given this reality, Globex Mining Enterprises Inc. (CA: GMX – $1.07 & US: GLBXF – $0.79 & GER: G1MN – €0.69) has navigated the challenges by partnering with higher quality companies. Option deals are arranged with the requirement for ongoing exploration commitments. This strategy has enabled Globex to participate in the successful exploration at many projects without the escalating financial burden.

The project generator strategy is also ideal to build value with retained royalties. As the outcome for a successful mine development is achieved by a partner, the royalty interests may deliver significant recurring income from the operations of a producing mine.

Several of Globex’ partners presented updates on their resource projects and Globex itself reported on two new transaction deals that may evolve into more substantial development projects as work gets underway.

Attractive Drill Core Assays Presented For Three Projects

Royalty partner Brunswick Exploration Inc [BRW-V] has remained committed to an aggressive pace of exploration activity since it acquired the Lac Escale (Mirage) property holdings from Globex. Following the initial discovery that confirmed the presence of lithium resources at the project, multiple attractive drill hole intervals have been presented.

In April, Brunswick reported wide widths of drill core bearing lithium mineralization. The results were highlighted by an interval of more than 58m with an average grade of 1.59% LiO2. Another notable intercept of 31.6m was mineralized with an average of 1.71% LiO2. Brunswick followed up with another batch of assay results a few days ago. Even wider intervals were encountered, including a section spanning more than 93m bearing an average of 1.55% LiO2.

Brunswick has now delineated several potential deposit areas through diamond drilling, including the North, Central and South Zones. Globex retains a GMR of 3% on the entire claims package comprising the Lac Escale project. Brunswick may purchase 1% of this royalty for $1 million. Under the terms of the acquisition agreement, Brunswick shall pay Globex an advance royalty payment of $100,000 on the fifth year anniversary of the transaction and every year thereafter.

Ongoing exploration work at the Kewagama Gold Mine claims by royalty partner Radisson Mining Resources [RDS-V] has also delivered attractive results. Radisson reported a batch of drill core assay results, including a higher-grade interval of 9.7gpt gold across a 4m section. A wider zone spanning more than 45m with an average grade of 1.1gpt gold was also highlighted. Based on these results, Radisson has chosen to add a second drill to continue work in this area. The Kewagama claims were acquired from Globex and incorporated within the O’Brien Gold Project. Globex retains a 2% NSR on the Kewagama claims as well as 1% NSR on the New Alger Gold Mine portion of Radisson’s holdings.

Second drill rig mobilized at the O’Brien gold project

Finally, Cartier Resources Inc [ECR-V] provided an update on the progress of its 2024 drill program on the Chimo Mine Project, part of which was drilled in large part on Globex’s Nordeau West and Nordeau East royalty claims in Vauquelin Township, Quebec. Some of the drill result on the West Nordeau Zone include 13.2 g/t gold over 2.3 metres and 7.7 g/t gold over 2.0 metres. On the East Nordeau Zone a result of 11.0 g/t gold over 2.8 metres was achieved. Globex retains a 3% Gross Metal Royalty on the Nordeau claims.

Additional Property Transactions Reported by Globex

Globex remains active arranging property transactions and establishing new partnerships with other companies. The Company reported two separate deals to vend land holdings to junior explorers. The first of these transactions featured the Whiteshore Property, a recently acquired sodium sulphate Alkali Disposition located in Saskatchewan, to Edison Lithium Corp. Globex was paid $200,000 in cash for this property, in addition to shares of Edison valued at $50,000, based on the average closing price during five trading days prior to the deal. Globex also retains a 2% Gross Revenue Royalty on this property. The Whiteshore Property is the fifth Alkali Disposition vended by Globex to Edison. The potential sodium sulphate resources on these property holdings are seen as a potential important component for sodium-ion battery formulations.

Globex also reported an option deal vending four clusters of property claims featuring the Kachiwiss uranium deposit. These claims groups, located in the Sept Isles region of Quebec, were acquired by Victory Battery Metals Corp. The Kachiwiss uranium deposit is a zone enriched with U3O8, extending 975m along strike and up to 760m in width. A non-compliant historical resource of more than 16 million tonnes was presented by a previous operator at this deposit. The deposit remains open for the potential of further expansion.

In addition, uranium has been encountered in sediment samples from a lake bottoms located further to the north resulting in Globex acquiring a very large package of additional claims which are now part of the option deal. Globex will receive $400,000 in cash plus 1,500,000 Victory shares, in payments over a 3-year term. Globex retains a 3% GMR on these claims, of which Victory may purchase a 1% GMR for a cash payment of $1 million.


There are two definitive aspects to the activity reported by Globex in this update. The ongoing exploration work underway by Brunswick, Radisson and Cartier features successful results achieved incrementally through several rounds of drilling work at each of the respective properties. This track record of competency highlights the caliber of the junior explorers that Globex has attracted to vend these projects.

It should also be noted that these royalty partners have chosen to expand the scope of their exploration work in recent months, illustrating the quality of these projects to advance further along the value curve. In the event of a successful mine development scenario, Globex retains royalty leverage that may generate significant revenue streams.

The second defining aspect that is of interest to Globex shareholders is that recent transactions, featuring property claims with leverage to sodium sulphate and uranium, illustrate the diversity of resources that are currently in demand. The foresight to acquire attractive property assets bearing potential leverage to such a wide range of mineral resources ensures that the future pipeline of transactions may remain active as various elements and exotic metals come into focus.

With a suite of property holdings including 123 projects with leverage to precious metals, 68 projects with leverage to base metals, and 56 projects with leverage to specialty metals and minerals, Globex is able to arrange transactions of interest with a wide range of prospective partner companies. These deals provide lucrative payments of cash and shares up front, with the bonus of retained royalties that may also pay off over of the longer term. Smallcaps Recommendation: BUY. Advice: BuyPrice Target: $2.87Latest Company Report (pdf)
For important disclosures, please read our disclaimer.

Leave a Reply

Your email address will not be published.