ECE Strategic Partnership Update – Subscription Price Revised to A$0.405
- ECE subscription price for 51% interest in Globe increased to A$0.405 from A$0.345 per share
- Total funds to be raised now A$47.85 million
- Expected date of Globe EGM to consider transaction 8 April 2011
- Investor Update, including Globe and ECE’s strategy post-completion, to be released Monday, 7 March 2011
Globe Metals & Mining Limited (“Globe” or “the Company”; ASX: GBE) is pleased to advise that the proposed strategic partnership between Globe and East China Mineral Exploration and Development Bureau (“ECE”) has been modified; the parties have agreed to increase the share subscription price to A$0.405 per share, from A$0.345 per share. The total funds raised as a result of this transaction will now be A$47.85 million. The proposed transaction advised to the market on 15 November 2010 otherwise remains the same.
Globe’s Executive Chairman, Mr. Mark Sumich, said “We are pleased that we have been able to renegotiate an increase to the subscription price with our new partner. It is important to re-iterate the benefits to Globe that will arise from this strategic partnership and investment by ECE:
- Immediate capital for completion of the bankable feasibility study into the Kanyika Niobium Project, as well as funding for Globe’s exploration projects and potential additional acquisitions
- Access to the Chinese capital markets, in particular relevant Chinese banks and funds, which will be critical in securing project finance for the Kanyika Niobium Project (capex.~$150m).
- Access to the Chinese steel mills, the consumers of FeNb, the major product to be produced from Kanyika.
- Access to ECE’s mining, metallurgical and exploration expertise.”
Timing
Experts’ reports are now being finalised by Coffey Mining and BDO Corporate Finance. The Notice of General Meeting, including the experts’ reports, is planned for despatch to shareholders on Friday, 11 March 2011, and the Extraordinary General Meeting of Shareholders is planned for Friday, 8 April 2011. These dates are subject to confirmation.
Download this document
