Globe Metals & Mining has reached a pivotal funding milestone with a US$10 million convertible loan agreement, propelling the Kanyika Niobium Project closer to development. The updated feasibility study remains on track for completion by March/April 2025, underpinning the project's execution phase.
- Signed US$10 million convertible loan Term Sheet with South Africa's IDC
- Updated feasibility study on schedule for March/April 2025 completion
- Power supply commitments secured for Phase 1 and Phase 2 operations
- Over 50% of Phase 1 funding now secured, including Ecobank Malawi loan
- Additional short-term loan facilities arranged to support working capital
Funding Milestone with IDC
Globe Metals & Mining Limited (ASX: GBE) has marked a significant step forward in the development of its Malawi-based Kanyika Niobium Project by signing a non-binding Term Sheet with the Industrial Development Corporation of South Africa (IDC) for a US$10 million secured convertible loan facility. This funding is earmarked to fully finance the pre-development work, including the updated feasibility study (FS), Front-End Engineering and Design (FEED), and early works critical to the project's advancement.
IDC's involvement, representing 22% of the estimated US$46 million required for Phase 1 development, not only injects vital capital but also lends substantial credibility and risk mitigation to the project. The South African government-owned IDC manages a portfolio of approximately US$5 billion, underscoring the strategic importance of Kanyika within the African mining landscape.
Feasibility Study Progress and Power Commitments
The updated feasibility study remains on track for completion by March or April 2025, a critical deliverable expected to validate the project's execution phase and incorporate any off-take agreements secured during the study period. Complementing this progress, Globe has secured a commitment from Malawi's Electricity Supply Corporation (ESCOM) to provide reliable power, 3MW for Phase 1 operations through 2029 and an additional 13MW for Phase 2 thereafter, addressing a key operational prerequisite.
Funding Landscape and Working Capital
Alongside the IDC facility, Globe has secured a US$15 million senior debt facility from Ecobank Malawi, collectively covering approximately 54% of the Phase 1 funding requirement. To support ongoing working capital needs, Director Bo Tan has provided a short-term loan facility of A$2.3 million, with an additional US$1.2 million loan facility agreed upon post-quarter end. These arrangements are non-dilutive and designed to maintain operational momentum as Globe finalizes its feasibility study and pursues further strategic funding.
Market Dynamics and Strategic Significance
The Kanyika Project holds strategic significance in the global niobium and tantalum markets, both of which continue to exhibit robust demand and elevated pricing. Niobium oxide prices remained strong at around US$59,000 per tonne during the quarter, supported by supply chain diversification imperatives and critical mineral stockpiling trends highlighted by entities such as the UK's Critical Minerals Intelligence Centre. Recent transactions, including the sale of a Brazilian niobium asset to a Chinese state-owned enterprise, further underscore the high valuation and geopolitical interest in these metals.
Globe's CEO Paul Smith emphasized the consolidation efforts during the quarter, praising the assembled Execution Owners Team and highlighting the project's readiness to transition into execution pending feasibility study completion and funding finalization. The company anticipates Board approval and project execution in the first half of 2025, with Phase 1 commissioning targeted for the first half of 2026.
Outlook and Next Steps
Looking ahead, Globe is focused on securing the remaining funding required to fully finance Phase 1 development, advancing off-take agreements, and completing the updated feasibility study. The company’s cash position at the end of December 2024 stood at A$0.28 million, supplemented by available loan facilities, underscoring the importance of timely capital raises to sustain progress.
With strong market fundamentals and strategic partnerships in place, Globe Metals & Mining is positioning the Kanyika Niobium Project as a critical new source of niobium and tantalum oxides, poised to meet growing global demand while mitigating supply chain risks for key industrial markets.
Bottom Line?
As Globe Metals nears feasibility completion and secures critical funding, the Kanyika Project’s transition from study to execution will be a key market watchpoint.
Questions in the middle?
- Will Globe secure the remaining funding needed to fully finance Phase 1 development?
- What off-take agreements will be finalized alongside the feasibility study completion?
- How will evolving niobium market dynamics impact project economics and investor appetite?