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Globe Metals & Mining progresses Kanyika niobium definitive feasibility study

Last updated: 07:10 01 Mar 2013 GMT, First published: 06:10 01 Mar 2013 GMT

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Globe Metals & Mining (ASX:GBE) is completing the technical components of the definitive feasibility study into the Kanyika niobium project in Malawi.

It has made progress on negotiations on the development agreement with the Malawi government, and are on track to complete them in the forthcoming months.

While the final elements of the DFS are being completed, Globe is working with Chinese niobium and tantalum producers with extensive technical expertise relating to processing and refining systems.

These talks are to assess development joint venture opportunities that can assist Globe to optimise its production process and significantly lower development related capital expenditure and ongoing operating costs at Kanyika once in production.

Discussions are also underway with project financiers for the development of Kanyika with expressions of interest received from a number of potential funding partners.

Globe is an African-focused resources company and plans to become the major niobium and tantalum producer in eastern and southern Africa.

Its main focus is the advanced multi-commodity Kanyika Niobium Project in Malawi, which will produce niobium and tantalum products.

Based on current resources, economic studies demonstrate Kanyika will support a 20 year mine life.

Globe Metals had a cash position of $19.86 million at the end of last quarter and with a market cap of $15.49 million, it is currently trading under its cash backing.


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