Malawi’s Mineral Resources Committee (MRC) has recommended the granting of a mining licence for Globe Metals & Mining’s Kanyika niobium project, the ASX-listed junior reported on Monday, sending its stock up nearly threefold.
Approval by the MRC is a critical and formal step in the process of granting a mining licence under the country’s mining law.
Pursuant to the Mines Act, the Principal Secretary of Mining is obligated to follow the recommendation of the MRC and grant the licence within 45 days, with the registrar then having five business days to notify the company and issue the licence, Globe explained.
The Australia-headquartered company confirmed on Monday that it had fulfilled the mandatory conditions for the grant of the licence by obtaining all relevant environmental certificates. It was now awaiting the receipt of a 25-year licence and subsequent execution of the development agreement with the government.
Globe MD Alistair Stephens said the granting of the mining licence was a significant step forward for the company’s goal of becoming a niobium producer.
Following the receipt of the mining licence and execution of the development agreement, Globe would start the release of information in a logical manner regarding the project.
In no particular order, the company explained that this would consist of the key terms of the development agreement with the government, the nature of a community development agreement and social responsibility programmes, project metrics and operational design including reserves and mine life, financing and sales strategy, and the building of organisational capacity.
Globe’s stock surged 271% to A$0.14 a share on the ASX on Monday.