Globex Mining Enterprises Inc. has notified shareholders that “Capital Pool Company” Shine Box Capital Corp. and “Electro Metals and Mining” (Electro), a private Canadian Corporation that optioned the Magusi polymetallic (Cu, Zn, Ag, Au) project located at 55 km northwest of Rouyn-Noranda, Quebec from Globex in 2022, have signed a nonbinding Letter of Intent under which the parties will combine their business operations.
Electro should complete financing to progress the Magusi deposit into production and conduct research on the substantial claim package before it continues with the reverse takeover of Shine Box.
In their Summary Sheet dated February 23rd, 2023, Electro stated “The Magusi project extends to surface and could lend itself to a quarry type of operation. With nearby processing facilities, and excellent road access, Electro Metals believes the Magusi project is ideal for evaluating the potential to move the project into production in the near-term. Once financed, work will begin immediately with infill drilling, expansion drilling, and advanced metallurgical test work.”
They continued, “Should the results prove positive, the Company will re-apply for a modification to its existing bulk sample permit and move directly into preparing to extract industrial scale samples for processing at nearby facilities. Should this all prove positive, Electro proposes to mine the shallow parts of the deposit and continue assessing the potential to develop the deeper copper-rich portions.”
Electro further added, “Based on its re-evaluation of the FMP during 2022, Electro has identified five additional exploration targets to test on the property. These deposits typically occur in clusters and data review suggests ongoing prospectivity.”
The Magusi property spans 5,847 hectares (14,448 acres) among 148 claims and one mining concession in the Quebec townships of Duparquet, Hebecourt, and Montbray.
According to the modified terms established on October 4th, 2022, the transaction, if it goes through, will result in $6,550,000 in cash and 7,500,000 Electro shares payable to Globex over four years, in addition to $12,600,000 in work and a 3% Gross Metal Royalty (GMR), with a 1.5% GMR that can be purchased for $2,250,000.
The project appears to be moving forward, which pleases Globex, in part because copper and zinc are now recognized as essential metals.