Globex Signs Chibougamau Standstill Agreement and Pockets Cash
June 09 2011 - 8:30AM
Marketwired
GLOBEX MINING ENTERPRISES INC. (TSX: GMX)(FRANKFURT: G1M)(OTCQX:
GLBXF) wishes to inform shareholders that it has signed a sixty
(60) day standstill as regards our Chibougamau land package,
previously described in press releases dated November 1st and 22nd,
2010 and January 6th and 13th, 2011.
Globex recently received the NI 43-101 Technical Report on the
Berrigan polymetallic property in Chibougamau and instructed
council to proceed with the paper work and submissions required to
support the spin-off of the Chibougamau assets to Globex
shareholders. In the meanwhile, we were approached by a third party
which has, over a long period, expressed an interest in our
Chibougamau assets, an interest which we rebuffed numerous times
due to our stated intent to spin-off the assets to our
shareholders. This time, the conversation centered on what they
would need to do in order to have a standstill during which they
would perform due diligence upon the Chibougamau assets. It was
ultimately agreed that Globex would sign a sixty (60) day
standstill in exchange for a non-refundable cash payment of one
hundred and fifty thousand dollars ($150,000) on the understanding
that neither party is obliged to reach a formal agreement after the
due diligence period.
Globex informed the third party that any future agreement must
equal or exceed the benefits contemplated by Globex in the spin-off
scenario including but not limited to a significant share
distribution to Globex shareholders and to Globex, a retained
interest and royalty in the properties by Globex, significant
exploration and/or development expenditures, etc. This scenario was
agreed upon by both parties.
Globex's view is that in the worst case, we do not reach a
definitive agreement with the third party and are $150,000 ahead, a
sum which will cover a good part of our spin-off costs when we
proceed with said transaction. In the best case scenario, we
achieve our objective which is to realize the value of the assets
through partially separating them from Globex, placing a dividend
in shareholders hands, seeing significant investment in the assets
and focused asset management while ensuring Globex a continued
retained interest in the assets including but not limited to a
Gross Metal Royalty (GMR).
We hope shareholders agree with our strategy in this matter and
the 60 day delay it entails.
This press release was written by Jack Stoch, P. Geo., President
and CEO of Globex in his capacity as a Qualified Person (Q.P.)
under NI 43-101.
We Seek Safe Harbour. Foreign Private Issuer 12g3 - 2(b)
CUSIP Number 379900 10 3
Forward Looking Statements
Except for historical information, this news release may contain
certain "forward looking statements". These statements may involve
a number of known and unknown risks and uncertainties and other
factors that may cause the actual results, level of activity and
performance to be materially different from the expectations and
projections of Globex Mining Enterprises Inc. ("Globex"). No
assurance can be given that any events anticipated by the
forward-looking information will transpire or occur, or if any of
them do so, what benefits Globex will derive therefrom. A more
detailed discussion of the risks is available in the "Annual
Information Form" filed by Globex on SEDAR at www.sedar.com.
22,035,675 shares issued and outstanding
Contacts: Globex Mining Enterprises Inc. Jack Stoch, P.Geo.,
Acc.Dir. President & CEO 819.797.5242 819.797.1470 (FAX)
info@globexmining.com www.globexmining.com
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