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Monday, 10 December 2012
Globex announces court date for final order motion to spin-out Chibougamau Independent Mines
Globex Mining (TSE:GMX) (OTCQX:GLBXF) Monday said the Quebec Superior Court will hear its motion this week for a final order regarding the spin-out of its subsidiary, Chibougamau Independent Mines (CIM).
Shares of the company rose 5.77 per cent on the news, trading at $1.10 as at about 3:15 p.m. EDT.
The motion for the final order on the spinout, initially announced in September, will be heard by the court on December 14.
The company received conditional approval last month from the TSX Venture Exchange to list CIM on the exchange as it completes the proposed spin-out.
With that approval in hand, CIM said then it would begin a $10 million private placement financing it originally announced in October. All the funds will be used for the 10, 100-per-cent-owned, advanced properties in the Chibougamau area.
Completion of the CIM spin-out is conditional upon Globex receiving the final order from the Quebec Superior Court and upon the completion of the private placement.
Globex also announced Monday that it has received an advance income tax ruling from Canada Revenue Agency confirming that the arrangement will be treated as a “tax-deferred butterfly reorganization”, with no material Canadian federal income tax payable by any of CIM or Globex shareholders who hold their shares as capital property.
The development-stage, mining exploration company has a North American portfolio of properties with gold, copper, zinc, silver, platinum, palladium, uranium, rare earth, nickel, magnesium and talc potential.
Earlier this month, Globex started prefeasibility study drilling at its Timmins talc magnesite property in Timmins, Ontario.
The campaign will consist of around 46 drill holes, or 7,000 metres. The majority of holes in the program will be infill, in order to elevate the first 20 years of potential resource to mineable reserve.
The preliminary economic assessment report, released in March of this year, was based on an initial 20-year period of mining 500,000 tonnes of ore per year, with total projected sales of $2.6 billion and an after-tax internal rate of return of 20 per cent.
To advance the project to prefeasibility study stage, Globex is completing infill and geotechnical drilling to upgrade the first 20-year resource to a 20-year reserve, which will be reported in a new NI 43-101 report. The company has also undertaken a series of larger scale tests to further improve recovery costs and product purity, it said.
Globex is aiming to become a major supplier of "high quality" talc and magnesia to the North American market.
The Timmins project was acquired in 2000 by Globex, who now holds a 90-per-cent stake, with the remainder held by Drinkard Metalox.