Globe Metals & Mining (ASX:GBE) has secured an $8.67 million commitment from Hong Kong-based investors Avocado Trading and Suitable Pioneer through a two-tranche private placement to advance the Kanyika Niobium Project in Malawi.
The funds will support early works and preparations for a final investment decision (FID) on the company’s flagship project, while also strengthening Globe’s working capital position and allowing for partial loan repayments.
The company recently received a 12-month extension under its mining development agreement, providing additional time to commence substantial mining operations.
Globe will issue 170 million new shares at $0.051 per share, representing a 24.9% discount to the 15-day volume weighted average price and a 29.1% discount to the last closing price. Each share will carry 1.12 free-attaching options, exercisable at $0.069 and expiring on 1 December 2026.
Tranche one is expected to raise about $6.96 million and will be completed under the company’s existing placement capacity, while tranche two, valued at around $1.71 million and including 190 million options, will be subject to shareholder approval.
Interim CEO and CFO Charles Altshuler said the placement brought in strategic investors with strong mining experience and long-term sector alignment.
“This placement strengthens our balance sheet and brings partners onto the register who understand the strategic value of niobium,“ he said.
“With funding now in place to progress early works and FID preparations, Globe is well positioned to transition Kanyika from feasibility into execution and deliver value for shareholders.”
Investors will be subject to a 12-month holding lock on placement shares and any shares issued on option exercise. The options include an early exercise clause allowing Globe to bring forward expiry if the share price trades at least 150% of the exercise price for 20 consecutive trading days.
Write to Dan Petrie at Mining.com.au
Images: Globe
