Globex Options Virgin Mountain Rare Earth & Beryllium Project in Arizona

Executive Summary

• Globex Mining Enterprises Inc. has entered into an option agreement to transfer its 100 % interest in the Virgin Mountain Rare Earth Property (Arizona) to Arizona Mountain Pass Heavy Rare Earths Pty Ltd. for cash, shares, royalties and exploration commitments.
• The deal provides Globex with $800,000 cash and $600,000 in shares over 42 months, a 3 % gross metal/mineral royalty (subject to a 1 % buy‑down), an annual advance royalty of US$100,000 once production begins, and up to CDN$2.5 million of exploration expenditures by the partner.
• The release includes extensive technical data showing high‑grade REE mineralization (TREO 0.328–1.24 %) with notable heavy rare earth element (HREE) concentrations (up to 96 g/t Tb₂O₃) and beryllium‑rich chrysoberyl pegmatites (7.1 % Be).

Key Details

• Transaction Consideration
• Cash: US$800,000 payable over 42 months.
• Shares: US$600,000 worth of Globex shares payable over the same period.
• Royalty Structure: 3 % gross metal/mineral royalty, reduced by a 1 % buy‑down for US$1 M annually (CPI‑adjusted).
• Advance Royalty: US$100,000 per year, recoupable from first production, commencing on the seventh anniversary of the Effective Date.

• Exploration Commitment: Up to CDN$2.5 million in exploration expenditures by Arizona Mountain Pass.

• Property Description

• Virgin Mountain Rare Earth & Beryllium Property: 23 unpatented lode claims covering 192.28 ha (475.1 ac) in Mohave County, AZ.

• Historical work includes uranium and REE exploration (1940s–1991).

• Geology & Exploration Results

• Hummingbird Zone (principal REE target): 250 m strike length, 30‑40 m wide corridor, mineralized over 0.9–≥1.45 m high‑grade widths; radio‑anomalous zones up to >10 m full width.
• REE + U/Th Assays (7 channel samples): TREO 0.328 % – 1.24 %; HREE enrichment with Tb₂O₃ up to 96 g/t (0.01 %).

• Beryllium‑bearing pegmatites: up to 6 m thick, 2.5 km strike length; chrysoberyl dominant Be mineral (7.1 % Be). Sample grades: 0.325 – 7.577 kg/t Be.

• Technical Notes

• Samples analyzed by American Assay Laboratories (ISO‑17025) using ICP‑OES/MS after 5‑acid digestion; Be samples digested via sodium peroxide fusion.

• Acknowledgement that 5‑acid method may under‑represent some REE phases and columbite is not fully dissolved.

• Strategic Rationale

• The option provides Globex with immediate liquidity, equity upside, and ongoing royalty income while transferring development risk to a specialist partner.
• High‑grade HREE and chrysoberyl‑rich Be pegmatites present potential for differentiated high‑value rare earth and ultra‑high‑purity beryllium products.

Notable Quotes

• “This transaction aligns with our strategy to monetize non‑core assets while retaining upside through royalties and future exploration commitments,” – Jack Stoch, Executive Chairman & CEO, Globex Mining Enterprises Inc.