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Globex Mining Enterprises Inc. informed shareholders that it has completed the purchase of the Magusi River Mine and associated land package from First Metals Inc. and has signed a Letter of Intent (LOI) with Mag Copper Inc.
Mag is currently a private company. Globex has granted Mag the option to acquire a 100% interest in Globex’s Magusi River copper, gold, zinc, silver deposit and associated claim package in Quebec. Terms of the transaction are the following: An aggregate of $1,075,000 in cash payments over a 36 month period including $375,000 over the first 12 months from the closing date, which is anticipated to be on or around April, 26th, 2011. 13,500,000 common shares of Mag on or before the closing date. Aggregate exploration or development expenditures of at least $10,250,000 on the property over a 4 year period from the closing date. Completion of a Bankable Feasibility Study within a 4 year period from the closing date. Globex retains a 3% Gross Metal Royalty, 1% of which may be purchased by Mag for $5,000,000. Globex’s royalty shall extend to any mining undertaken within one mile of the present external boundaries of the claims covered by the agreement. An annual advance royalty of $50,000 is payable starting at the 4th anniversary of the agreement and continues until commercial production is achieved. |
