Globe ECE investment approved

Business Spectator

Globe Metals & Mining Ltd announced at the EGM held earlier on the day shareholders unanimously approved the $47.85 million investment in Globe by East China Mineral Exploration and Development Bureau (ECE) and for ECE's strategic partnership to develop the Kanyika Niobium Project in Malawi, Africa, intended to commence production of ferro-niobium in 2013, a key additive to sophisticated steels.

Globe's current executive chairman Mark Sumich said the breadth of support across the share register, and the unusually high extent of shareholder participation was also higher than usual.

As part of the transaction, East China Minerals has given the FIRB binding undertakings to the effect that any of Globe's product offtake agreements relating to rare earth products will occur on an arms length commercial basis, and any parties wanting to enter into offtake agreements will be given reasonable and commercial opportunity to negotiate and any revenue from sale of rare earth products will be directly referable to market prices.

Globe also has a number of other projects at an earlier stage of development including up to an 80% interest in the Machinga Rare Earth Project in southern Malawi, from Resource Star Ltd (RSL) and up to 90% in the Mount Muambe Fluorite-heavy rare earth project in Mozambique. ECE will hold more than 51% shares in Globe, becoming its majority shareholder.