I recently attended the Money Show here in Toronto to learn a bit more about personal finanace, investing strategies, and to check out the latest stock analysis software.
There was also a trade show, but only one mining company booth was present. This definitely wasn’t the PDAC. Interestingly there were about five marijuana company booths, so that is where the promotion is today.
The lone mining company was Globex Mining, here is their website. They referred to themselves as a “mining bank”, so that was something that peaked my interest.
Speaking with their president, Jack Stoch, he gave me an overview on their business model. As I understood it, GLOBEX’s model is to acquire a portfolio of mineral properties. They would try to enhance their value by undertaking some limited geological work. Finally they would option, JV, or sell the property while retaining an NSR royalty.
Mr. Stoch told me that Globex currently has over 140 land packages in their inventory. Their properties will be at different stages. Some have resource estimates, others only mineralized drill intersections, mineral showings, untested geophysical targets, or combinations of these.
They are focusing their acquisitions on lower risk jurisdictions like Quebec, Ontario, Nova Scotia, New Brunswick, Tennessee, Nevada, Washington, and Germany. They try to acquire historical mines that have old shafts, following the adage the best place to find a new mine is next to an old mine. They also have some industrial mineral properties.
Globex’s only NSR revenue property right now is a zinc project in Tennessee that can generate a seven-figure royalty each year, when that operation is up and running. Unfortunately for Globex the zinc operation has not been in consistent operation the last few years.
Its a good concept
I like the concept that Globex are promoting. I like the idea of having a one-stop shop that acquires and options out exploration properties to mining companies looking for new projects.
I also like the idea of trying to consolidate land packages in an area, minimizing the patchwork of multiple ownership claims that can hinder advanced development.
Globex hope that by putting time and effort into a bunch of properties a few of them will pay off. If they can generate sufficient NSR revenues, the company may get to the self-sustaining stage.
Its not a new idea