Globex Mining Enterprises (TSE:GMX) said that it has signed an options deal with private mineral explorer Titan Iron Ore Corp., under which Titan can earn 100% of Globex’s Labrador Trough iron project, situated in Northern Quebec.
The property consists of 200 claims totalling 9,160 hectares, and covers a 19.9 mile-long magnetic anomaly coinciding with known showings of magnetite, a common iron oxide mineral.
The deal has a 90 day due diligence provision, which Titan has obtained for a non refundable cash payment of $40,000, Globex said in a statement.
The total transaction, if exercised and documented with an asset purchase agreement, requires a cash payment of $4 million over five and a half years, as well as six million Titan shares to Globex by January 12, 2012.
Globex will retain a 3% gross metal royalty, and beginning in the sixth year will receive annual advance royalty payments of $100,000.
Globex has more than 100 properties in North America, covering precious metal, base metal, industrial minerals and specialty minerals.