The Globex Mining Model - Project Generator ' Defined' - Part 3

THE GLOBEX MINING MODEL – PROJECT GENERATOR ‘DEFINED’ – PART 3

Mirror, Mirror, On the Wall, What’s a Project Generator, Tell Us All.

Not an Explorer and Nor a Miner – But to Them Both – It is a Definer

By: PDO

 Let’s allow Globex Mining Enterprises ( Symbol ‘GMX’ on the TSX in Canada) to tell us precisely what it sees its role as one of the world’s leading Project Generators is – besides, who better than a Project Generator itself to tell us – right??

We logged into SEDAR, Canada’s public company filing host, a databank, which operates much like EDGAR in the United States We then clicked into ‘Issuer Profiles and scrolled down in the alphabetical list of company names that popped up. Presto, there we see our target Globex Mining Enterprises. Click on the company’s name and up pops a list of all of the company’s filings in chronological order (dated order) from the most recent, right down to when the company came into existence. Convenient huh?

As we scroll down the company’s filings we spot the Globex Mining Enterprise’s ‘Management’s Discussion and Analysis’ (aka as the MD&A) beside a date in April 2018. Since public companies have approximately 120 days from their fiscal  year-ends to file such reports we can see this will be for the company’s most recent fiscal period (year-end). The MD&A is the accompanying document to a company’s Quarterly or Year End Financial Statements. Where you find one, you should always find the other.

Of the two documents, the MD&A is the one that is usually drafted by management. With that in mind, we concluded that an MD&A would contain some kind of a definitive description of just what the company does – right? True, it is the document that provides the descriptive details that go along with the accompanying financial statements.

As we peruse the Globex MD&A we had selected we only had to get as far as Page 1 to start discovering what we are looking for.

Page 1 contains the following paragraph -

“Globex Mining Enterprises Inc. (“Globex”) is a North American focused exploration and project generator/property bank which seeks to create shareholder value by acquiring mineral properties, undertaking limited exploration and preparing the properties for optioning, joint venturing, or outright sale, all within the goal of advancing the projects towards production.”

As we flipped to Page 2 we discovered the remainder of the explanation we were searching for in the following concise paragraphs.

“As part of its total compensation arrangements, we seek to secure long-term royalty arrangements which will provide continued financial benefits to Globex and its shareholders.

Currently, we are focused on acquiring properties which meet one or more of the following criteria:

• ·      Have historic or NI 43-101 mineral resources,
• ·      Have reported past production,
• ·      Have established drill targets or drill intersections of economic merit and,
• ·      Are located on major geological structures.

Under Globex property option agreements, the Optionee (Globex would be the Optionor) gains the rights and control of the property and the right to acquire an interest in the property in exchange for:

• ·      a series of annual cash and/or share payments,
• ·      an exploration work commitment, as well as,
• ·      a Gross Metal Royalty (GMR).

Upon the satisfaction of the option terms, the property interest is transferred to the Optionee. The option contract will terminate if annual payments and/or work commitments are not met. Globex may retain a GMR or other carried or participating interest in the property when it is transferred. Outright property sales may include cash and/or share payments and a form of royalty interest payable (GMR) when the said projects achieve commercial production or another negotiated milestone.

Our current mineral portfolio consists of approximately 162 early to mid-stage exploration, development and royalty properties which contain Base Metals (copper, nickel, zinc, lead), Precious Metals (gold, silver, platinum, palladium), Specialty Metals and Minerals (manganese, titanium oxide, iron, molybdenum, lithium, rare earths and associated elements) and Industrial Minerals (mica, silica, feldspar, pyrophyllite as well as talc and magnesite). 

Globex’s common shares are listed on

• ·      the Toronto Stock Exchange ("TSX") under the symbol ’GMX’, and
• ·      in Europe under the symbol ‘G1MN’ on the Frankfurt, Stuttgart, Berlin, Munich, Tradegate, and
• ·      on Lang & Schwartz Stock Exchanges, and
• ·      and under the symbol ‘GLBXF’ on the OTCQX International Exchange in the United States.”

From here, our adventure into understanding how a Project Generator greatly differs from the usual junior exploration and development companies, we are all familiar with, is going to whip up the urge to pay a lot more attention to this investment niche. As the metals markets heat up and gain traction the Project Generators are going to retake a prominent position they held in the past. We will explain that comment as we progress.

You will see why Project Generators will far exceed the potential of ETFs and such aimed at metal investors. You will understand why ETFs are much more like a crap-shoot than the real-meal-deal of a Project Generator.

Coming Soon  - Part 4 will contain JuniorMining.com’s take and interpretation on what Globex was really saying in those 5 or 6 key paragraphs – and why you really need to know!!

It’s titled Project Generator – ‘Refined’ Part 4

to be continued........

The JuniorMining.com Team

?JuniorMining.com 2018