Globex to Sell Francoeur/Arntfield/Lac Fortune Gold Property to Yamana Gold Inc. for +$15 Million

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 FrancoeurArntfieldLac 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 FrancoeurArntfieldLac 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 9
LEI 529900XYUKGG3LF9PY95
For further information, contact:
Jack Stoch, P.Geo., Acc.Dir.
President & CEO
Globex Mining Enterprises Inc.
86, 14 th Street
Rouyn-Noranda, Quebec Canada J9X 2J1


Tel.: 819.797.5242
Fax: 819.797.1470
info@globexmining.com
www.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 .


Primary Logo

News Provided by GlobeNewswire via QuoteMedia

The Conversation (0)
Rick Rule, mine site.

Rick Rule: Gold, Silver, Oil, Uranium — Price Triggers, My Strategy Now

Rick Rule, proprietor at Rule Investment Media, outlines key factors affecting the resource sector today, highlighting the impact of the Iran war. He also explains what he's doing with his money right now, saying his portfolio is currently underweight when it comes to sub-$250 million market cap... Keep Reading...
A stack of US hundred-dollar bills lies on top of more scattered banknotes.

Perpetua Resources Secures US$2.9 Billion Loan for Idaho Antimony Project

Perpetua Resources (TSX:PPTA,NASDAQ:PPTA) secured a US$2.9 billion loan from the US Export-Import Bank (EXIM) to fund construction of the Stibnite gold project in Idaho, the country’s only planned domestic source of antimony.The 13-year debt facility includes a US$2.4 billion upfront tranche,... Keep Reading...
New Break Announces Receipt of DTC Eligibility in the United States

New Break Announces Receipt of DTC Eligibility in the United States

New Break Resources Ltd. (CSE: NBRK) (OTCQB: NBRKF) (FSE: O91) ("New Break" or the "Company") is pleased to announce that its common shares are now eligible for electronic clearing and settlement in the United States through the Depository Trust Company ("DTC"). As a subsidiary of the Depository... Keep Reading...
Hand holding smartphone displaying Tether Gold with buy and sell options.

Tether's Gold Rush: Stablecoins Modernizing Precious Metals Investment

Gold is becoming more mainstream with the help of blockchain technology.With global instability on the rise, safe-haven assets such as gold have become increasingly attractive, while high-risk, high-reward cryptocurrencies such as Bitcoin are proving to be too volatile for investors with a low... Keep Reading...
Jordan Rusche, oil barrel and wheat.

Jordan Rusche: My Gold Stock Strategy, Plus Unloved Commodities to Watch

Jordan Rusche of Mining Stock Monkey shares his outlook for gold and how he's approaching gold stocks right now — in his view, it's key for investors to protect their downside. He also weighs in on recent M&A activity, including Equinox Gold's (TSX:EQX,NYSEAMERICAN:EQX) plan to acquire Orla... Keep Reading...

Interactive Chart

Latest Press Releases

Related News