Globex Mining closes sale of its Mid-Tennessee Zinc Mine royalty for cash and Electric Royalties stock

Globex Mining Enterprises Inc said it has completed the previously-announced sale of the company‘s Mid-Tennessee Zinc Mine royalty to an assignee of Electric Royalties Ltd. In return, Globex received $13,750,000 in cash, of which $250,000 was received previously net of applicable withholding taxes, as well as 8,752,860 Electric Royalties shares. The company was also granted 5,348,970 Electric Royalties warrants, each of which entitles Globex to purchase one additional Electric Royalties share at a price of $0.60 for a period of four years. READ: Globex Mining Enterprises seeks growth with its diversified, low-risk model Globex also noted that it could receive an additional cash payment of $1 million from Electric Royalties’ assignee in the event that the zinc price per pound received by the owner of the Mid-Tennessee Zinc Mine exceeds US$2 for any continuous three-month period beginning after the closing of the transaction. As well, Globex has announced the closing of the sale of a 1% Gross Metal Royalty created on its 100%-owned Glassville, New Brunswick manganese exploration property to Electric Royalties in consideration for 247,140 Electric Royalties shares, plus 151,030 Electric Royalties warrants, each of which entitles Globex to purchase one additional Electric Royalties share at a price of $0.60 for a period of four years. As a result of the two transactions, Globex has become the largest shareholder of Electric Royalties, holding in total 12 million shares and 5.5 million warrants. Globex currently owns 18.1% of the issued and outstanding shares of Electric Royalties, but its ownership stake could increase to 24.3% if all its warrants are exercised. Globex Mining Enterprises is an exploration, royalty, and property bank company with a diversified portfolio of mid-stage exploration, development, and royalty properties in Canada, Germany, and the US. Contact Sean at sean@proactiveinvestors.com