Globex to Sell Francoeur/Arntfield/Lac Fortune Gold Property to Yamana Gold Inc. for +$15 Million
June 14 2021 - 7:30AM
GLOBEX MINING ENTERPRISES INC. (GMX – Toronto Stock
Exchange, G1MN – Frankfurt, Stuttgart, Berlin, Munich,
Tradegate, Lang & Schwarz, L&S Exchange, TTM
Zone, Stock Exchanges and GLBXF –
OTCQX International in the USA) is pleased to inform
shareholders that it has entered into a definitive Purchase
Agreement to sell the Francoeur/Arntfield/Lac Fortune gold property
to Yamana Gold Inc. (TSX:YRI; NYSE:AUY; LSE:AUY). The
property, located in Abitibi, Québec, adjoins Yamana’s Wasamac Gold
Mine project on which Yamana is currently working in order to
advance to production. The Globex property includes a number of
former gold mines and areas of excellent gold exploration
potential. Exploration by Globex has demonstrated the potential for
finding additional areas of significant gold mineralization. In
addition to the Francoeur/Arntfield/Lac Fortune property, as part
of the transaction Yamana will acquire 30 claims in
Beauchastel township to the east of the Wasamac Gold Mine property
and three claims in Malartic township from Globex.
Under the Purchase Agreement, Globex
will receive the following cash and share payments from
Yamana:
Upon closing of the transaction:
$4,000,000, which will be satisfied by Yamana issuing
706,714 shares to Globex at a deemed price of $5.66 per share.
Based on the closing price of Yamana’s shares on the
Toronto Stock Exchange on Friday, June 11, 2021 of $6.22,
the 706,714 Yamana shares have a current market value of
$4,395,761.08;
On: |
-
first anniversary of closing: $3,000,000 in cash |
|
- second anniversary of closing: $2,000,000 in
cash |
|
- third anniversary of closing: $3,000,000 in
cash |
|
- fourth anniversary of closing: $3,000,000 in
cash |
Based on Yamana’s current trading price,
the total cash and share consideration is $15,395,761.08, of which
Globex will receive $7,395,761.08 in cash and shares within the
first year.
Globex may elect to receive one or more of the
four anniversary payments in Yamana shares. If Globex so elects,
the number of shares issued by Yamana will be based on the volume
weighted average trading price of Yamana’s shares for the five
trading days immediately preceding the date of payment.
In addition, Globex will retain a 2% Gross Metal
Royalty on all mineral production from the Francoeur/Arntfield/Lac
Fortune property and the 30 Beauchastel and three Malartic
township claims, of which 0.5% may be purchased by Yamana for
$1,500,000.
Yamana has agreed to assume payment of the three
underlying royalties on the properties and will make a final
environmental bond payment of $223,633.50 currently due by Globex
on the Francoeur Mine in July 2021, after which Globex will
transfer the bond to Yamana.
Globex is pleased to have entered into the
Purchase Agreement with Yamana, which will provide Globex with
revenue for the next four years as well as a significant royalty
stream should a mineral deposit on the property package enter into
production.
Closing of the sale, which is expected to take
place on June 21, 2021, is conditional upon regulatory
approval and standard closing conditions.
This press release was written by Jack Stoch,
Geo., President and CEO of Globex in his capacity as a Qualified
Person (Q.P.) under NI 43-101.
We Seek Safe Harbour. |
Foreign Private Issuer 12g3 – 2(b) |
|
CUSIP Number 379900 50 9LEI 529900XYUKGG3LF9PY95 |
For further information, contact: |
Jack Stoch, P.Geo., Acc.Dir.President & CEOGlobex Mining
Enterprises Inc.86, 14th StreetRouyn-Noranda, Quebec Canada J9X
2J1 |
Tel.: 819.797.5242Fax: 819.797.1470
info@globexmining.comwww.globexmining.com |
Forward Looking Statements:
Except for historical information, this news release may contain
certain “forward looking statements”. These statements may
involve a number of known and unknown risks and uncertainties and
other factors that may cause the actual results, level of activity
and performance to be materially different from the expectations
and projections of Globex Mining Enterprises Inc. (“Globex”). No
assurance can be given that any events anticipated by the
forward-looking information will transpire or occur, including
closing of the transaction with Yamana Gold Inc., or if any of them
do so, what benefits Globex will derive therefrom. A more detailed
discussion of the risks is available in the “Annual Information
Form” filed by Globex on SEDAR at www.sedar.com.
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