Globex Mining Enterprises options historic silver project to miner Excellon Resources

Globex Mining Enterprises Inc (TSE:GMX) (OTCMKTS:GLBXF) announced Tuesday that it has optioned one of its portfolio projects to silver mining company Excellon Resources (TSE:EXN) (OTCMKTS:EXLLF).

The Quebec-based mining company agreed to a deal with Excellon on the Bräunsdorf property, now known as the Silver City project, in Germany.

Excellon will pay Globex C$500,000 in cash and C$1.6 million worth of stock over a three-year period, with the first payment of C$100,000 due upon signing and an additional C$100,000 due on the first anniversary of the signing date.

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In addition, in the event of a mineral resource estimate on Silver City, Excellon will make a one-time payment of C$300,000 to Globex and an additional C$700,000 payment once commercial production begins.

Excellon will assume Globex’s current year property exploration obligation of C$500,000 and pay the final portion of the cost of geophysical surveys that Globex recently completed on the project.

Globex has completed two years of exploration on the exploration licence. The company told shareholders that the project is “well advanced” with numerous drill target areas defined. 

The mineral property bank will retain a 3% royalty on recovered precious metals and a 2.5% royalty on all other metals.  Excellon may purchase 1% of Globex’s 3% royalty on precious metals and 1% of Globex’s 2.5% royalty on all other metals for a payment of C$1.5 million, the company said in a statement.

The 164 square kilometre Bräunsdorf land package has been rudimentarily explored and mined since the 13th century.

Historical silver production indicates a current day value of about C$500 million, according to Globex, including byproducts such as zinc, lead, and fluorite.

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Story by ProactiveInvestors