Globex options Virgin Mountain to Arizona Mountain

Executive Summary

• Globex Mining Enterprises Inc. has optioned its 100 % interest in the Virgin Mountain rare‑earth and beryllium project to Arizona Mountain Pass Heavy Rare Earths Pty. Ltd. for a total consideration of $800,000 cash + $600,000 in shares plus royalty and exploration commitments.
• The agreement includes a 3 % gross metal/mineral royalty (subject to a 1 % GMR buydown for $1 M) and an annual advance royalty of $100,000 payable from the seventh anniversary until commercial production.
• Exploration results highlight high‑grade REE mineralization in the “Hummingbird zone” with TREO ranging 0.328 %–1.24 %, including up to 96 g/t Tb₂O₃, and beryllium pegmatites containing 0.325–7.577 kg/t Be (chrysoberyl‑dominant).

Key Details

• Consideration:
• $800,000 cash payable over a 42‑month period.
• $600,000 in Globex shares payable over the same period.
• Royalty Structure:
• 3 % gross metal/mineral royalty on production, reduced by a 1 % GMR buydown for an upfront $1 M payment; adjusted annually for U.S. CPI.
• Annual advance royalty of $100,000 (U.S.) beginning the seventh anniversary of the effective date, recoupable from first production.
• Exploration Commitment:
• Arizona Mountain Pass to spend C$2.5 million on exploration activities within the property.
• Property Description:
• 23 unpatented lode claims covering 192.28 ha (475.1 ac) in Mohave County, AZ; accessible via a 16‑km gravel road from Mesquite, NV.
• Geology & Mineralization – REE (Hummingbird Zone):
• Length ~250 m along a 30–40 m wide corridor trending 65° NE.
• Minimum high‑grade widths of 0.9–1.45 m (assayed).
• TREO values 0.328 %–1.24 %, with heavy REE enrichment; Tb₂O₃ up to 96 g/t.
• Geology & Mineralization – Beryllium:
• Pegmatite dikes up to 6 m thick, strike length ~2.5 km.
• Be grades from four channel samples: 0.325–7.577 kg/t, predominantly as chrysoberyl (7.1 % Be).
• Assay Methodology:
• Samples processed by American Assay Laboratories (ISO‑17025) using five‑acid digestion for REE and sodium peroxide fusion for Be; noted limitations on complete dissolution of certain minerals.
• Historical Context:
• Property previously explored for uranium (1940s–1991) and beryllium (1950s–1960s); multiple abandoned shafts, pits, and adits present.

Notable Quotes

(No direct quotes were provided in the release.)