Globex enters option agreement on Ontario gold property

Globex Mining Enterprises Inc. (TSX: GMX) has entered an option agreement with 1001565486 Ontario Inc. for its Ramp/Maude Lake gold property located southeast of Timmins, Ontario. Under the agreement, Ontario Inc. will pay $4.7 million in cash, $1.05 million in shares, and complete $6.0 million in exploration work over four years to earn 100% ownership of the property.

The payment schedule begins with $500,000 cash and $500,000 in work expenditures by May 11, 2027. Subsequent annual payments increase progressively, with the final payment of $1.75 million cash and $300,000 in shares due May 11, 2030. Globex will retain a 3% Gross Metal Royalty, which can be reduced to 2% for $1.5 million.

The agreement includes milestone payments based on resource estimates and production levels. If Ontario Inc. reports a compliant resource estimate exceeding 300,000 ounces of gold, it must pay Globex $1 million within 30 days. Additional payments of $1.1 million, $1 million, and $1.5 million are triggered when cumulative production reaches 100,000, 250,000, and 500,000 ounces respectively.

Starting in the sixth year, Ontario Inc. must make annual advance royalty payments equal to the higher value of 60 ounces of gold or $300,000, increasing by 15 ounces or $100,000 annually thereafter.

The Ramp/Maude Lake property consists of 66 unpatented mining claims, 14 patented mining claims, and 3 mining leases totaling 1,792 hectares. Historical exploration dating to 1917 has included over 49,000 meters of drilling and approximately $11 million in expenditures. A 1994 non-NI 43-101 resource estimate calculated 793,474 tons grading 0.235 oz/t gold containing 191,284 ounces of gold.

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