Globemin to acquire interest in Argentine company
Globemin Resources Inc GBM
Shares issued 1,448,812 Jul 22 close $0.16
Thu 29 Jul 99 News Release
Mr. James Wright reports
The company has signed a letter of intent with a private resource and
financial services company to purchase a 15.6-per-cent interest of the
share capital of Minutes Investments Limited, a BVI company that owns an
industrial minerals project in Argentina through its wholly owned
subsidiary, SurNatron SA. Under the terms of the agreement, Globemin will
receive 303,088 fully paid shares of Minutes in exchange for a unit issue
of Globemin. It is proposed that the units will comprise one full share and
a half warrant at a price of 35 cents per unit and will carry a two-year
term. Each whole warrant entitles the holder to purchase an additional
share at the price of 40 cents for the first year and 50 cents for the
second year. The number of units to be issued is based on a current
valuation of the 15.6-per-cent interest of $500,000 (U.S.) and will be
2,071,428 or 32.4 per cent of the issued and outstanding shares of
Globemin. The aforementioned transaction is dependent upon the successful
completion of the $1.0-million financing outlined in the company's news
release dated May 20, 1999.
Resfinco has, with other investors, been a partner in the development of
the Argentine assets and as part of the transaction, upon closing Globemin
will have an opportunity to acquire a larger position in Minutes.
SurNatron has the opportunity to develop into a major industrial minerals
producer of sodium-derivative products based on its two major sodium
sulphate deposits in the Puna region of northwest Argentina. It is proposed
to develop a sodium sulphate processing facility on a staged basis. The
first phase involves the production of 24,000 tonne per year equivalent of
anhydrous sodium sulphate as import replacement for the domestic Argentine
market. Subsequent stages will involve plant expansions as market
opportunities for sodium sulphate and sodium carbonate arise. Initial
production is anticipated in early 2000.
Sodium sulphate and sodium carbonate have wide industry usage in Argentina.
The primary uses of these products are in laundry detergents, the pulp and
paper industry, glass manufacture, the textile industry and as chemical
feedstocks.
The board of directors of Globemin has approved the issuance of new stock
options to James K. Wright (10,000), P.T. O'Kane (5,000), J.J. Brown
(10,000), M.L. Stevens (45,000) and C. Reynolds (20,000). The exercise
price has been set at 50 cents and the options carry a four-year term. The
board also approved the repricing of the 50,000 existing stock options from
$1.50 to 50 cents and the extension of the expiry date for four years.
The aforementioned transactions are subject to the receipt of all necessary
government and regulatory approvals, the completion of formal documentation
and shareholder approval.
(c) Copyright 1999 Canjex Publishing Ltd. canada-stockwatch.com
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