Proactive Investors - Run By Investors For Investors

Globex acquires stake in NSGold, owner of Mooseland gold mine in Nova Scotia

Prospect generator and resource property bank Globex says it has agreed with NSGold to reduce its gross metal royalty
Inking a deal
Globex has struck a new agreement with NSGold

Globex Mining Enterprises Inc (TSX:GMX) (OTCMKTS:GLBXF) revealed it has taken an 11.1% stake in NSGold Corp (CVE:NSX) after it reached a new deal with the junior resource firm.

Prospect generator and resource property bank Globex said it has agreed with NSGold to reduce its gross metal royalty (GMR) – that's a cut taken on the metal produced – on its Mooseland Gold mine in Nova Scotia from 4% to 2%.

READ:  Globex Mining anticipates next steps as neighbor to northwest begins drilling at Crater Lake

The companies also agreed to eliminate the potential 5% share issuance upon reaching production in exchange for the immediate issuance of more than 1.74  million shares of NSGold – or an 11.1% interest.

Globex says it expects that the reduction of the royalty will advance the potential of the Mooseland Gold deposit's advancing toward production.

Mooseland is a Meguma-type gold deposit with a NI 43-101 inferred resource of 2.52 million tonnes, grading 5.6 g/t (grams per tonne) gold at a cutoff grade of 2.6 g/t for 454,000 contained ounces of gold.

Globex Mining shares in Toronto were unchanged at $0.32.

Contact Giles at [email protected]

Follow him on Twitter @Gile74 

View full GMX profile View Profile

Globex Mining Timeline

Related Articles

November 19 2018
The plan is to move towards a production rate of 30,000 ounces of gold a year
March 25 2019
Recent production numbers from Pan African's operations give plenty of grounds for encouragement
Mining camp
June 14 2019
The Klondike gold rush in the area took place between 1896 and 1899

© Proactive Investors 2019

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use