- Globex (TSX:GMX) signed an option deal with a private Ontario company to advance the RAMP/Maude Lake gold property for ~C$11.75M in cash, shares, and exploration work
- Ontario Inc. can earn 100 per cent over four years through staged payments and C$6M in exploration spending
- Globex keeps a 3 per cent royalty (reducible to 2 per cent) plus milestone and long-term royalty payments tied to resources and production
- Globex Mining Enterprises stock (TSX:GMX) opened trading at C$2.32
Globex Mining Enterprises (TSX:GMX) has announced it has signed an option agreement with private company 1001565486 Ontario Inc. covering Globex’s RAMP/Maude Lake gold property in northeastern Ontario, southeast of the Timmins mining district.
Under the terms of the agreement outlined in a media release, Ontario Inc. may earn a 100 per cent interest in the property through a combination of cash payments, share issuances, and exploration expenditures totalling approximately C$11.75 million over a four-year period. The package includes C$4.7 million in cash payments, C$1.05 million in shares of Ontario Inc., and C$6.0 million in exploration work commitments.
Upon completion of the option, Globex will retain a 3 per cent gross metal royalty (GMR) on the property and a one-kilometre surrounding area of influence. Ontario Inc. has the option to reduce this royalty to 2 per cent by paying C$1.5 million.
Structured payment and work commitments
To maintain and ultimately exercise its option, Ontario Inc. must meet a series of staged obligations:
- May 11, 2026 (Initial period): C$500,000 in cash and C$500,000 in exploration work before the first anniversary.
- May 11, 2027: C$600,000 in cash, C$250,000 in shares, and C$1 million in cumulative work expenditures.
- May 11, 2028: C$600,000 in cash, C$250,000 in shares, and C$1.5 million in additional work.
- May 11, 2029: C$1.25 million in cash, C$250,000 in shares, and C$3 million in additional work.
- May 11, 2030: Final payments of C$1.75 million in cash and C$300,000 in shares.
In addition, the agreement includes milestone-based payments tied to exploration success and production benchmarks. These include a C$1 million payment upon the reporting of a compliant gold resource exceeding 300,000 ounces, as well as further payments tied to cumulative production thresholds at 100,000, 250,000, and 500,000 ounces.
Royalty structure and long-term payments
Beginning six years after the agreement’s commencement, Ontario Inc. will also be required to make annual advance royalty payments. These payments will be calculated based on the higher of a fixed cash amount or the value of a specified number of gold ounces, with escalating thresholds over time. All advance royalties will be credited against future production royalties owed to Globex.
Property overview
The RAMP/Maude Lake property encompasses approximately 1,792 hectares of mining rights, including a mix of unpatented and patented claims as well as mining leases. An additional 208 hectares of surface rights are included. The project lies roughly 12 kilometres north-northeast of Matheson, Ontario, with road access via Highway 101 and an all-season gravel road network.
The site has a long exploration history dating back to gold discoveries in the early 20th century. Work conducted through the 1980s to early 2000s included approximately C$11 million in expenditures, 49,000 metres of drilling, and both open-pit and underground development.
Historical estimates, which are not compliant with current NI 43-101 standards, have outlined significant mineralization. A 1994 estimate suggested approximately 191,000 ounces of gold in multiple reserve categories. More recent modelling work in 2016–2017 indicated a smaller open-pit resource of about 41,000 ounces at an average grade of 3.5 g/t gold, also based on historical data.
Geologically, the property hosts gold mineralization associated with quartz vein systems trending northeast-southwest, as well as east-west trending shear zones containing silicified breccia. The Number 5 Zone is considered the most prominent deposit identified to date.
Development outlook
No exploration work has been reported on the property since 2017. The new agreement is expected to renew activity at the site, with Ontario Inc. responsible for advancing exploration and potentially expanding the known resource base.
The transaction reflects Globex’s ongoing strategy of monetizing its portfolio through partnerships while retaining long-term royalty exposure to potential production.
About Globex Mining Enterprises Inc.
Globex Mining Enterprises Inc. is a focused exploration and development property bank.
Globex Mining Enterprises stock (TSX:GMX) opened trading at C$2.32 and has risen more than 65 per cent since this time last year.
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