Globex Mining Enterprises Inc. Closes Sale of Mid-Tennessee Zinc Mines Royalty
PRESS RELEASE
Globex Mining Enterprises Inc.
“At Home in North America”
55,302,817 shares issued and outstanding
August 11, 2021
Globex Mining Enterprises Inc. Closes Sale of Mid-Tennessee Zinc Mines Royalty
Rouyn-Noranda, Québec, Canada. GLOBEX MINING ENTERPRISES INC. (GMX – Toronto Stock Exchange,
G1MN – Frankfurt, Stuttgart, Berlin, Munich, Tradegate, Lang & Schwarz Stock Exchanges and GLBXF –
OTCQX International) is pleased to announce that it has closed t he previously announced sale of Globex’s
Mid-Tennessee Zinc Mine royalty to an assignee of Electric Royalties Ltd. (ELEC-TSXV) (“Electric Royalties”)
for the following consideration, received by Globex at closing:
- $13,750,000 in cash, of which $250,000 was received previously, net of applicable withholding taxes;
- 8,752,860 Electric Royalties shares; and
- 5,348,970 Electric Royalt ies warrants, each of which entitle s Globex to purchase one additional Electric
Royalties share at a price of $0.60 for a period of four years.
In the event that the zinc price per pound received by the owner of the Mid-Tennessee Zinc Mine exceeds
US $2.00 for any continuous three -month period commencing after the c losing of the transaction, Electric
Royalties’ assignee will make an additional cash payment of $1 million to Globex.
Globex also announces that it has closed the sale to Electric Royalties of a 1 % Gross Metal Royalty created
on Globex’s 100% -owned Glassville, New Brunswick manganese exploration property for the following
consideration, received by Globex at closing:
- 247,140 Electric Royalties shares; and
- 151,030 Electric Royalties warrants, each of which entitles Globex to purchase one additional Electric Royalties
share at a price of $0.60 for a period of four years.
As a result of the two transactions, Globex has become the largest shareholder of Electric Royalties, holding
in total 12,000,000 shares and 5,500,000 warrants.
Globex is an exploration and holding company with more than 200 exploration property assets and
royalties, more than $30,000,000 in cash and shares of other companies , including the cash and shares
received from Electric Royalties , and no debt. In addition , Globex holds currently out-of-the-money
warrants of Electric Royalties and Falco Resources. Globex’s sale of the Francoeur/Arntfield/Lac Fortune
gold property to Yamana Gold Inc. announced on June 22, 2021 is expected to provide Globex with an
additional $11 million of revenue over the next four years and the recent option of the historic Eagle Gold
Mine to Maple Gold Mines Ltd. is expected to deliver $200,000, half in cash and half in shares , over the
first six months of the five-year option period.
Globex continues to vend projects and acquire new ones such as the recently -announced purchase of the
Rouyn-Merger gold property which includes three areas of drill- outlined gold mineralization along a 6.5
kilometer stretch of the gold localizing Cadillac Break. Globex’s strong balance sheet should now enable us
to undertake various types of transactions that we previously were unable to consider.
2
“Early Warning” Disclosure
Globex wishes to make the following disclosure under the “early warning” requirements of applicable
Canadian securities regulations.
The 8,752,860 Electric Royalties s hares and 5,348,970 Electric Royalties warrants referred to above were
issued to Globex by Electric Royalties pursuant to a Royalty Purchase and Sale Agreement dated as of
August 6, 2021 between Globex and Electric Royalties under which Globex sold its Mid-Tennessee Zinc Mine
royalty to an assignee of Electric Royalties, and the 247,140 Electric Royalties s hares and 151,030 Electric
Royalties warrants referred to above were issued to Globex by Electric Royalties pursuant to a Royalty
Purchase Agreement dated as of August 6, 2021 between Globex and Electric Royalties under which Globex
sold a 1% Gross Metal Royalty on its 100%-owned Glassville, New Brunswick manganese exploration property
to Electric Royalties (collectively, the “Transactions”).
Immediately prior to the closing of the Transactions, Globex held 3,000,000 Electric Royalties s hares,
representing 5.23% of the 57,405,101 issued and outstanding Electric Royalties shares. Immediately following
the closing of the Transactions, Globex holds 12,000,000 Electric Royalties shares, representing 18.07% of the
issued and outstanding Electric Royalties shares, and holds 5,500,000 Electric Royalties warrants. Assuming
the exercise of the Electric Royalties w arrants, Globex would hold 17,500,000 Electric Royalties s hares,
representing 24.34% of the Electric Royalties shares that would then be issued and outstanding.
Globex may not exercise any portion of the Electric Royalties w arrants if the exercise of such portion of the
warrants will result in Globex having beneficial ownership of, or exercising direction or control over, 20% or
more of the issued and outstanding Electric Royalties s hares except to the extent that the shareholders of
Electric Royalties (on a disinterested basis, excluding any shares held by Globex) have approved the issuance
of such shares in conformity with the policies of the TSX Venture Exchange. Electric Royalties has undertaken
to use commercially-reasonable efforts to obtain approval from its shareholders for the issuance to Globex
of shares upon the exercise of the warrants if such approval is required pursuant to the policies of the TSX
Venture Exchange in order for Globex to exercise the w arrants in full. In that regard, Electric Royalties has
undertaken to present such m atter to its shareholders at its next annual meeting of shareholders, to the
extent that such approval is still required.
Globex acquired the shares and warrants described in this press release for investment purposes and in
accordance with applicable securities laws, Globex may, from time to time and at any time, acquire additional
shares and/or other equity, debt or other securities or instruments (collectively, “Securities”) of Electric
Royalties in the open market or otherwise, and reserves the right to dispose of any or all of its Securities in
the open market or otherwise at any time and from time to time, and to engage in similar transactions with
respect to the Securities, the whole depending on market conditions, the business and prospects of Electric
Royalties and other relevant factors.
A copy of the early warning report filed by Globex in connection with the Transactions is available on SEDAR
under Electric Royalties’ profile.
3
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 differe nt 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. A more detailed discussion of the risks
encountered by Globex is available in the “Annual Information Form” for the fiscal year ended December 31,
2020 filed by Globex on SEDAR at www.sedar.com.
We Seek Safe Harbour. Foreign Private Issuer 12g3 – 2(b)
CUSIP Number 379900 50 9
For further information, contact:
Jack Stoch, P.Geo., Acc.Dir.
President & CEO
Globex Mining Enterprises Inc.
86, 14th Street
Rouyn-Noranda, Quebec Canada J9X 2J1
Tel.: 819.797.5242
Fax: 819.797.1470
www.globexmining.com