Globe Uranium - $14m to spend

Australian Investor Article

Globe Uranium Limited is a uranium explorer with assets in Malawi and Argentina. Mr Mark Sumich, Managing Director of Globe Uranium Limited talked to the Australian Investor about the Company.

“There are a lot of uranium juniors out there – our objective is to differentiate by delineating a resource as quickly as possible.

“Our financial situation is looking very good… we have more than $14 million in cash capability (including $3.4m from in-the-money options which expire in October 2007) which we believe will focus investor attention. It is important in this market to have sufficient capital to be in control of your own destiny.

“We raised $8 million last month by way of an institutional placement and are using the proceeds primarily to expedite activities in Malawi, where we have an objective to achieve a JORC-compliant resource at the Kanyika Uranium Project by the end of the year.

“Our high calibre technical team is the back-bone of the company, and possesses a great breadth and depth of skills and expertise”, Mr Sumich explained. Mr Sumich and his brother (Mr David Sumich, the Chairman of the Company), cofounded the company two years ago after “seeing the boom coming”. Neither he, nor his brother are geologists, but see their role as enabling the technical team to carry out the exploration.

“There had been no real uranium exploration for over 25 years so we saw a good opportunity to come in at the grass roots level. We set up the business in mid-2005 and then proceeded to IPO in December 2005.

“We are always on the look-out for new projects – remember, we are only two years into the boom after twenty five years of no-exploration, so it would be a misconception to think all the good opportunities are gone”, Mr Sumich commented.

Mr Sumich is a corporate lawyer by profession. He completed an MBA in London, has operated as a financial consultant and been involved in a number of dotcom companies.

“I am committed to making sure the company delivers and am enjoying the challenges of the role… the policy issues surrounding uranium are engaging, the challenges of running a small but growing business are enormous, I have a significant financial stake in the enterprise and get to travel to some very interesting places. What else would you rather be doing in the middle of a resources boom?”, Mr Sumich commented.

Mr Sumich explained that his company is very “environmentally responsible”, and “to some extent, uranium companies are pro-environment by their very nature. What could be more pro-environment than replacing carbon emissions with 100% clean energy? This is our challenge for the 21st century, and uranium exploration is at the heart of this cause” Mr Sumich explained.