Globe Metals Raises $8.67M at $0.051 to Advance Kanyika Niobium Project

Strategic Capital Injection

Globe Metals & Mining Limited (ASX – GBE) has successfully secured $8.67 million through a carefully structured two-tranche private placement, aimed at accelerating the development of its flagship Kanyika Niobium Project in Malawi. The placement, priced at $0.051 per share, attracted strategic investors Avocado Trading Limited and Suitable Pioneer Limited, both with deep expertise in mining and natural resources.

The first tranche, raising approximately $6.96 million, was completed under Globe’s existing ASX placement capacity, while the second tranche, expected to raise $1.71 million, awaits shareholder approval at the upcoming Annual General Meeting in late November 2025. Alongside the shares, investors will receive free-attaching options exercisable at $0.069, providing potential upside while aligning interests with the company’s growth trajectory.

Funding Focused on Project Advancement and Financial Stability

The capital raised will be directed primarily towards advancing the Kanyika Niobium Project through to substantial mining operations and the critical Final Investment Decision (FID) stage. This follows a recent milestone where Globe secured a 12-month extension under its Mining Development Agreement, providing a clear runway to execution.

Additionally, part of the proceeds will be used for partial repayment of existing loans, acquisition of additional mining and exploration licences, and general working capital. This financial bolstering is expected to enhance Globe’s operational flexibility and reduce leverage as it transitions from feasibility to execution.

Investor Protections and Shareholder Considerations

Shares issued under the placement and those resulting from option exercises will be subject to a 12-month holding lock, preventing on-market trading during this period and ensuring investor commitment. The options include an early-exercise clause allowing Globe to accelerate expiry if the share price sustains a premium, subject to shareholder approval.

Importantly, neither strategic investor will exceed a 19.99% voting power threshold, maintaining compliance with regulatory limits and safeguarding shareholder interests. The company confirmed that no related parties or directors are involved in the placement, underscoring the arm’s-length nature of the transaction.

Positioning for Growth in the Niobium Sector

The Kanyika Niobium Project, located in central Malawi, holds significant mineral resources including niobium, tantalum, and rare earth elements. With a robust JORC-compliant resource base and ongoing engineering studies, Globe aims to develop an integrated mining and refining operation to supply high-purity niobium and tantalum oxides to global markets.

CEO Charles Altshuler highlighted the strategic nature of the placement, noting the alignment with investors experienced in mining and the strengthened balance sheet as key enablers for the company’s next phase. The funding momentum coincides with regulatory extensions and operational milestones, positioning Globe to unlock value for shareholders.