Globe Metals & Mining (ASX:GBE) has raised $6.96 million in tranche one of its $8.67 million private placement, funding the company ahead of a final investment decision of the Kanyika Niobium Project in Malawi.
The company will issue 136.5 million shares to Hong Kong-based investor Avocado Trading for the first tranche, holding an issue price of $0.051.
Globe Metals will issue another 33.5 million shares and 190 million free-attaching options, following shareholder approval at an upcoming general meeting expected for 27 November 2025. Options are proposed to be exercised at $0.069 and to expire one year from the issue date.
Meanwhile, the company will wholly convert Jennifer Ping’s existing US$540,000 ($828,973) loan into equity at $0.051 per share, while also leading up towards a loan repayment with director Bo Tan by issuing another 56.2 million shares at the same price.
The repayment to Tan will bring the company’s debt down from $6.09 million to $2.82 million, following the execution of a formal binding variation agreement.
CEO Charles Altshuler says a strengthened balance sheet will allow the company to work towards a final investment decision of the Kanyika Project.
“We appreciate the continued support shown by both Ms Ping and Mr Tan as long-term funding partners of the company,” Altshuler says.
“Ms Ping’s decision to convert her entire loan into equity demonstrates confidence in Globe’s strategy and long-term growth prospects, while discussions with Mr Tan remain ongoing and are progressing constructively.
“Their actions underscore a strong commitment to Globe’s success and have been instrumental in enabling the company to advance toward project development and delivery.”
Globe Metals & Mining is an Africa-focused explorer that intends to bring its Kanyika Project to produce niobium and tantalum.
Write to Maddison Elliott at Mining.com.au
Images: Globe Metals & Mining
