Globex: Update on Zinc Royalty Sale

Rouyn‐Noranda, Québec,  Canada. 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 US) is pleased  to inform shareholders that it has received notice  from Electric Royalties Ltd. (ELEC‐TSXV) that it has entered into a revised letter of intent (LOI) with Sprott Resource Streaming and Royalty  (Sprott)  regarding  Electric  Royalties’  and  Sprott’s  engagement  to  purchase  Globex’s  Mid‐Tennessee  zinc royalty. In order to facilitate completion of the purchase, Globex has agreed to several changes to the terms of the purchase agreement as outlined below: 

 

‐ Cash  payment: Under  the  revised  agreement, Globex  will  receive  an  additional  $500,000  for  a  total  of $13,750,000 of which $250,000 has already been paid. 

 

‐ Share  payment: Under  the  revised agreement, Globex will  receive  9,000,000 Electric  Royalty  shares and 5,500,000 four‐year warrants with an exercise price of $0.60 per share.  Under an acceleration clause, after 2 years, should  the Electric Royalties share price exceed $1.00  for 10 consecutive days, Globex must exercise 2,750,000 warrants at $0.60 per share.  Likewise, after 3 year, should the Electric Royalties share price exceed $1.50 for 10 consecutive days, Globex must exercise 2,750,000 warrants at $0.60 per share. 

 

Under the revised agreement, Globex will, excluding warrants to be exercised at a later date, have slightly less than a 20% shareholder stake in Electric Royalties and thus, shareholder approval will not be required for the transaction.  The closing date of the transaction has been extended 21 days in order to get required approvals and final legal documents but it is expected that the sale of Globex’s Mid‐Tennessee zinc royalty will be completed before that date as Sprott has now committed to the entire cash portion of the purchase price (see Electric Royalties/Sprott press release of today’s date). 

 

Globex is pleased with Electric Royalties’ progress toward closing the purchase transaction.  At closing, Globex expects to  have  over  $27,500,000  in  cash  and  shares  of  other  listed  companies  as  well  as  the  5,500,000  Electric  Royalties warrants. In  addition,  Globex  is  working  to  complete  several  other  transactions  which,  if  finalized,  will  generate additional revenue for the company. 

 

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