ECE Strategic Partnership Receives Overwhelming Shareholder Approval
Highlights
- 90.5% of participating shareholders (by number of shares) voted in favour of the transaction by proxy – resolution approved
- Transaction approved unanimously on show of hands
- Very high shareholder participation:
- 44.8% of shareholders participated – 45.6m shares of 101.8m
- 192 shareholders submitted proxies
- Completion to take place on Friday, 15 April 2011
- ECE endorse ‘open source’ rare earth policy for Globe
- Kanyika Niobium Project development to be accelerated
Results of Extraordinary General Meeting
Globe Metals & Mining Limited (“Globe” or “the Company”; ASX: GBE) is very pleased to announce that at the Company’s Extraordinary General Meeting (EGM) held earlier today, Globe’s shareholders unanimously approved the A$47.85 investment in Globe by East China Mineral Exploration and Development Bureau (ECE).
Globe’s current Executive Chairman, Mr. Mark Sumich, said “we are delighted with such a high level of support from shareholders for the strategic partnership with ECE, as well as the extent of shareholder participation, which was abnormally high.”
“What was also pleasing was the breadth of support for the transaction across the share register. 8 of the top 10 non-custodial/nominee holders and 16 of the top 20 voted in favour of the resolution, as well as 76 holders with 50,000 or fewer shares (8 against).”
“We welcome ECE onto Globe’s share register, and look forward to working with them in the next phase of the Company’s growth and development.”
Attached to the ASX Announcement is a copy of a press release by ECE’s Chairman, Mr. Shao Yi, in relation to the shareholder approval.
‘Open Source’ Rare Earth Policy
As part of this transaction, ECE has given to the Australian Foreign Investment and Review Board binding undertakings to the effect that any of Globe’s product off-take agreements relating to rare earth products will occur on an arms length commercial basis, that any parties wanting to enter into off-take agreements will be given reasonable and commercial opportunity to negotiate, and that any revenues from the sale or supply of rare earth products will be directly referable to market prices.
Commenting on this ‘open source’ approach, ECE’s Chairman, Mr. Shao Yi, said “we understand how important transparent and open supply arrangements with respect to rare metals, including rare earths, are to global industries and technology, so we were very happy to provide this undertaking to the Australian Government.”
“It is worth noting that Brazil supplies over 90% of the world’s niobium, and China’s rapid industrialisation could not have taken place without open access to this critical input into sophisticated steels. Indeed, this is one of the primary reasons for our investment into Globe, to enable the Kanyika Niobium Project to come into production.”
“We look forward to working with Globe to fully explore, and potentially develop, its exciting rare earth projects, and any future supply arrangements will always be determined on the basis of maximizing shareholder value.”
Kanyika Niobium Project – Accelerated Development
At the EGM, ECE affirmed its commitment to bringing Kanyika into production as soon as possible. Mr. Shao Yi said “we intend to push Globe’s management to meet the Project’s development timetable, as this is critical to improving the Company’s share price.”
Proxy Notification
In accordance with Section 251AA(2) of the Corporations Act 2001 the Company hereby provides the following information on proxy votes received in relation to the EGM:
Resolution - Approval of Issue of Shares to AO-Zhong International Resources Pty Ltd
For - 25,509,687
Against - 4,342,276
Abstain - 0
Open - 15,769,793
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