PERTH (miningweekly.com) – ASX-listed Globe Metals & Mining has signed a memorandum of understanding (MoU) with its major shareholder East China Mineral Exploration and Development Bureau (ECE) to undertake and fund exploration activities in Malawi.
Under the terms of the MoU, Globe would maintain control of all exploration activities, while ECE would substantially fund all exploration activity at the Kanyika niobium project, the Chiziro graphite project, the Machinga rare-earth element project, and the Salambidwe rare-earth element project.
Globe would reimburse ECE for exploration expenditure related to each project, in the event of ECE outlining a Joint Ore Reserve Committee-compliant resource which led to the commissioning of a prefeasibility study, or at such time as income is generated from the project.
“As Globe’s major shareholder, ECE has again proven its support to the company through the signing of this binding MoU, which leverages ECE’s internal technical capability,” said Globe’s acting CEO and exploration manager, Fergus Jockel.
Along with the funding, ECE would also provide up to ten staff to be based on-site, and begin exploration work this month.
Jockel said that the funding and technical support from ECE provided a non-dilutive mechanism to increase value across the project portfolio and removed a large portion of the exploration risk.
“We believe the collaboration of Globe and ECE exploration teams will boost our ability to discover more resources in Africa and strengthen the company’s asset portfolio and long-term outlook.”
He noted that while Globe would manage the exploration programmes, the company remained focused on completing the definitive feasibility study at Kanyika.
“Globe is currently undertaking optimisation studies and progressing the development agreement at Kanyika, which, once complete, will advance its objective to become a major producer of niobium and tantalum in Southern Africa.”