Globex Mining Enterprises (GMX.TO) entered an option agreement with 1001565486 Ontario Inc., on Globex's RAMP/Maude Lake gold property located southeast of the Timmins Ontario area, it said Tuesday.
The company said Ontario Co. will pay $4.7 million in cash payments, $1.05 million in Ontario Inc. shares, and complete $6.0 million in exploration work expenditures on the Ramp/Maude Lake property over four years. At the end of the option agreement Globex will retain a 3% Gross Metal Royalty GMR royalty with a buy down to 2% GMR for $1.5 million, applicable to the property and an area of influence of one km around the property boundaries.
The Ramp property, 100% owned by Globex Mining Enterprises, consists of mining rights comprised of 66 unpatented mining claims, 14 patented mining claims, and 3 mining leases totalling 1,792 hectares, 7 parcels of patented and leased surface rights totalling about 208 hectares are also included in the package, it said.
Shares of the company were last seen unchanged at $2.27 on the Toronto Stock Exchange.