The Power of Controlling Property Assets in the Right Place at the Right Time

The impressive suite of exploration property holdings controlled by Globex Mining Enterprises Inc. (CA: GMX – $0.88 & US: GLBXF – $0.64 & GER: G1MN – €0.56) has once again ideally positioned the Company to participate in numerous speculative transactions throughout the ongoing bull market for resource stocks.

Globex has demonstrated the capacity to recognize potential value early in the curve. The Company secures promising properties before they become the focus of speculative interest. As market conditions constantly change, established leverage to specific resources may become more attractive. As a result, potential suitors emerge in pursuit of option deals for highly prospective land holdings. Thereafter, the Company may arrange lucrative transactions with ambitious junior explorers.

Globex provided an update on three projects that originally were acquired cheaply when they were overlooked and under the radar. Globex acquired the Bald Hill Antimony Property based on historical resource leverage. The outlook of reduced market supply for antimony now prompted a high-value transaction for the project. The Guigues Silica Property was primarily a candidate for the potential resumption of silica mining when Globex secured it. However, silica is not the most glamorous resource extraction opportunity, but with the recently discovered potential for hydrogen resources to be part of this story, it is now a much more attractive holding. Lastly, as work is advancing to outline a promising scandium deposit at an adjacent land package, the Crater Lake Scandium Property controlled next door by Globex is also building intrinsic value as a potential acquisition target.

Premium Valuation Secured in Option Deal

Globex reported a transaction vending the Bald Hill Antimony Property to junior explorer Superior Mining International Corp [SUI-V]. The property is comprised of 26 claims, located in Southern New Brunswick. Superior agreed to pay a total of $680,000 in cash, plus 2 million shares (currently worth about $440,000) to Globex, staged in a series of payments structured over a four year term. In addition, Superior committed to spend at least $4,600,000 in exploration activity during the term of the agreement. Globex shall retain a 3.5% Gross Metal Royalty, of which Superior may purchase 0.5% for $500,000 in cash.

Bald Hill was originally acquired by Globex in 2021 for a modest cash payment, along with a data base comprising 16,500 files on the property and surrounding area. Historical exploration had revealed antimony resources, encountered as stibnite, a primary mineral of antimony. A high-grade interval of 43% Sb was reported in a 2m interval of shallow trenching. Thereafter a drilling program of 16 widely spaced drill holes outlined a deposit area extending roughly 300m to depth. Following its acquisition of the project, Globex completed a small drill program that encountered attractive grades of stibnite in several drill holes.

Work to advance definition of an antimony deposit at the project is now more appealing due to the recent termination of antimony exports by China – the leading worldwide producer of the metal. As a result, antimony prices have increased, adding more urgency to the exploration focused on development of new resources in other nations. No doubt this factor contributed to the high value of the transaction with Superior Mining. Globex acquired Bald Hill just three years ago when the metal was off the radar and has now achieved a significant gain on the asset value.

Proximity to Hydrogen Discovery Presents a Potential Bonus Value Proposition for Guigues Silica Property

Globex also reported an update for the additional value proposition related to its Guigues Silica Property. Exploration for hydrogen has been underway immediately adjacent to this property, advancing independently by junior explorer Quebec Innovative Materials Corp [QIMC-C]. On September 4th, this company revealed that it had encountered significant hydrogen concentrations exceeding 1000ppm.

Guigues was initially acquired by Globex primarily for the presence of silica resources and the historical mining activity within an open pit operation at the project. The potential that resources of hydrogen may also be outlined within the project area represents an unexpected bonus to further build the value proposition for this property.

Further work from independent exploration in the area may establish a new hydrogen district in the area with the Guigues Silica project centrally located. This potential for hydrogen leverage is new and evolving. Globex may thus benefit from this additional resource leverage and perhaps be ideally positioned at the right place and time with yet another high-value discovery prospect available for an option deal in the future.

New Resources Zones Confirmed in Proximity to Crater Lake Scandium Prospect

Elsewhere in Quebec, Globex is again a potential beneficiary due to progress achieved independently next door to one of its property holdings. The wholly-owned Crater Lake Scandium Project is immediately adjacent to a similarly named property held by junior explorer Scandium Canada Ltd [SCD-V]. A summer drilling program was recently completed by Scandium Canada and the company reported that mineralization was observed in all drill holes. The purpose of this exploration was focused towards optimizing a potential open-pit mine shell for an emerging scandium deposit. The second objective was to confirm a possible extension of the deposit area. The newly encountered mineralization promises to significantly increase the size of the Crater Lake scandium deposit.

This is good news for Globex shareholders. Globex controls the southern half of the crater structure that is related to the formation of the scandium deposit being outlined by its neighbor to the north. Ongoing exploration enhances the potential for advancement through to a development decision. This in turn could build intrinsic value for the property area controlled by Globex as a potential discovery target for additional scandium resources. This potential has been validated by an AeroMag VLF-EM geophysical survey of the entire crater structure, recently completed by Globex. Similar anomalous targets have been identified in the crater rim that may also yield new resources to an advanced mine development strategy.

As the exploration work continues to focus attention on the discovery potential of this region, Globex may await the results and make strategic choices in the future to capture value from its wholly-owned property leverage. This may include advancing proprietary exploration ambitions or perhaps seeking a qualified partner to establish a transaction for the asset.

Conclusion

Each of the projects highlighted in this update was acquired at low cost earlier in the cycle by Globex. Other companies failed to recognize the opportunity these projects represented. Globex acted with confidence and is now the beneficiary of market events. With its enormous suite of property holdings, the Company has been able to secure a diverse asset base providing leverage to a wide variety of resources, often strategically located in proximity to highly prospective mining districts. Thereafter, activity from unrelated companies may to build additional value for these Globex projects.

This option deal to vend the Bald Hill Antimony project in a premium transaction illustrates this potential. Globex may now await similar offers for Guigues and Crater Lake if favorable outcomes to nearby exploration work also build the value proposition for adjacent property holdings. Globex parlays the shrewd acquisition strategy to benefit from payments in cash and shares of partner companies as assets are vended. The Company also retains royalty leverage, creating an additional channel for potential value creation. The track record of positive results achieved through this strategy serves as a case study for a successful project generator. Smallcaps Recommendation: BUY.

Smallcaps.us Advice: Buy	Price Target: $2.87	Latest Company Report (pdf)
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