Globe Raises A$8.67M, Eliminates Debt, and Starts Building Malawi Niobium Mine

Strategic Funding and Debt Elimination

Globe Metals & Mining Limited (ASX – GBE) has taken a decisive step forward in its development journey by raising A$8.67 million through a two-tranche private placement to strategic investors Avocado Trading Limited and Suitable Pioneer Limited. This capital injection has been instrumental in eliminating the company's outstanding debt, which was fully extinguished by 23 December 2025 through a combination of loan repayments and conversions. The company’s cash position improved dramatically, rising from just A$0.31 million at the end of September 2025 to A$5.76 million by December.

Transitioning to Construction Phase

Following the successful capital raise and debt clearance, Globe has commenced construction activities at the Kanyika Niobium Project in Malawi. This fully permitted project is now moving from feasibility and permitting stages into active execution. Early works began in January 2026 under an Early Contractor Involvement (ECI) agreement with Sinomine International (Zambia) Engineering Company Limited, a firm with relevant regional construction expertise. These initial activities include access road upgrades, bulk earthworks, drainage, site establishment, and land clearing, all designed to validate construction methodologies and support the finalisation of the Bankable Feasibility Study (BFS) targeted for March 2026.

Maintaining Control and Capital Discipline

Importantly, Globe retains 100% ownership and commercial control over the Kanyika Project, preserving strategic flexibility as it advances towards full construction and first oxide production. The early works contract is structured on a cost-reimbursable basis with a fixed monthly management fee, reflecting Globe’s disciplined approach to capital management. This ensures that while the company leverages Sinomine’s technical expertise, it remains firmly in control of the project’s direction and commercial outcomes.

Market Context and Strategic Positioning

The global niobium market remains structurally tight, dominated by a few producers, with demand increasingly driven by high-strength low-alloy steels and emerging high-value applications in aerospace, defence, superconductors, medical imaging, and advanced electronics. Notably, the rapid expansion of artificial intelligence (AI) and high-performance computing is boosting demand for high-purity niobium materials used in superconducting magnets and power management systems. Globe’s Kanyika Project is positioned as a significant non-Brazilian source of niobium, attracting interest from institutional investors, trading houses, and strategic partners seeking supply chain diversification amid geopolitical and technological shifts.

Looking Ahead

With a strengthened balance sheet, a debt-free capital structure, and construction underway, Globe Metals & Mining is poised to advance the Kanyika Niobium Project towards production. The company’s focus on capital discipline, execution certainty, and maintaining strategic flexibility will be critical as it navigates the final stages of the BFS and moves closer to delivering niobium oxide to global markets.