One intriguing company we’ll be exploring in greater detail during our visit to northwest Quebec is Globex Mining Enterprises (GMX, TSX) which has been a project of President and CEO Jack Stoch, well-known in Quebec mining circles, for nearly a quarter of a century. The company, which was listed only about a month after the 1987 stock market crash, has just 22 million shares outstanding and has gone through no rollbacks. GMX gives new meaning to diversification – it seems an investor has exposure to just about the entire periodic table with Globex. Wasamac is also a big part of the equation for this company and Stoch agrees that Richmont’s property has multi-million ounce potential.
Mining in Quebec has certainly been profitable for Stoch. Just recently, Osisko Mining (OSK, TSX) purchased back a 1% royalty interest from “Geoconseils Jack Stoch Limitee” (his private company) in consideration for the issuance of 460,000 common shares of Osisko (do the math, at $14 a share that’s a lot of money – Stoch will pay more in taxes that most people will ever earn in a lifetime). The royalty was encumbering a portion of the Canadian Malartic and Barnat deposits and is part of a 2.5% gross metal royalty interest that was granted as a result of the acquisition of certain claims of the Canadian Malartic property in March, 2006.
Stoch, a bright geologist and businessman, was gracious with his time with me as our interview lasted for more than an hour. At one time he was reported to be the largest private mineral rights holder in Quebec, so he knows this business and the area like the back of his hand. Over the course of the next week, as we continue our visit to northwest Quebec, we’ll be posting more segments of the interview but below is a short 3-minute excerpt. Stoch is bullish on the Wasamac area and Globex holds 5 strategic claims (the potential eastern extension of the Wasamac deposit) that it recently optioned to Richmont for a hefty price.
BMR Sept. 13 Interview With Jack Stoch (excerpt)
Note: The writer and interviewer does not hold a position in Globex Mining.
