ROUYN-NORANDA, QUEBEC -- (Marketwire) -- 02/18/13 -- GLOBEX MINING ENTERPRISES INC. (TSX: GMX)(FRANKFURT: G1M)(OTCQX: GLBXF) is pleased to provide shareholders with the following update.
On January 25th, 2013 Globex listed a new spun-out company called Chibougamau Independent Mines Inc. ("Chibougamau Mines"), (TSX VENTURE: CBG)(STUT: CLL) after completing a financing of $2.6 M. The new company holds 100% interest in Globex's former Chibougamau mining camp assets consisting of 5 former copper-gold mines, the down dip geological potential from 3 additional copper gold mines, 1 unmined copper-gold deposit with a historical tonnage estimate, one unmined zinc, gold, silver deposit with 9 historical tonnage estimates, one potentially large, open pittable iron-titanium deposit with a historical resource estimate and a large package of exploration titles which include numerous zones and mineral intersections. (see NI 43-101 Technical Reports on www.globexmining.com entitled: Technical Review (NI 43-101 compliant) and Evaluation of the Exploration Potential of the "LAC CHIBOUGAMAU" Mining Properties in McKenzie, Roy, Obalski and Lemoine Townships, Abitibi Mining District, Province of Quebec - Dated August 16, 2012 and prepared by Claude P. Larouche, B.Sc. Eng., M.Sc., Geol., ing. (OIQ) - Ovalbay Geological Services Inc. and Technical Review (NI 43-101 compliant) & Evaluation of the Exploration Potential on the BERRIGAN Gold-Zinc-Silver Project, McKenzie Township, Chibougamau, Abitibi Mining District, Province of Quebec (Amended Version) - Dated August 15, 2012 and prepared by Claude P. Larouche, B.Sc. Eng., M.Sc., Geol., ing. (OIQ) - Ovalbay Geological Services Inc.
As indicated to shareholders, Chibougamau Mines initiated diamond drilling on February 1, 2013 on the Berrigan zinc, gold, silver zone and at this date has completed 8 drill holes in the area of the deposit.
In addition to continuing drilling, a program of line cutting and geophysics has started on selected, high priority areas on a number of other Chibougamau area properties. Drill permits for these target areas are expected shortly.
Globex retains a 3% Gross Metal Royalty on all of Chibougamau Mines' properties.
We anticipated the selling of shares of the "dividend" company by shareholders wishing to actualize their gain, but are somewhat surprised at the aggressive, sell pricing in advance of even the first drill results of our program at the Berrigan Property. On the other hand, we are encouraged by the number of shareholders who have chosen to hang in with us as we press forward with an aggressive exploration program aimed at proving the potential of the Chibougamau Mines properties.
Nyrstar NV's Mid-Tennessee Zinc Mine has ramped up production which along with higher zinc prices has raised Globex's monthly royalty payments from the $50,000/month range to the $80,000/month range. If zinc prices continue to rise, Globex can expect the royalty payments to rise. Currently Globex receives a 1% Gross Metal Royalty at zinc prices between $0.90 and $1.10. If the zinc price exceeds $1.10, the royalty increases to 1.4%.
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