In a show of confidence and to help with short-term working capital, Globe Metals & Mining Ltd director Bo Tan is providing the company with an additional loan facility of up to US$1.2 million on an unsecured basis.
The facility is non-dilutive to existing shareholders and will enable Globe to concentrate on finalising the updated feasibility study and securing offtake agreements for the Kanyika Niobium Project in Malawi.
It comes just a month after the company signed a non-binding term sheet with the Industrial Development Corporation (IDC), a key player in economic development across Africa, for a US$10 million convertible loan.
Read more: Globe Metals & Mining signs US$10 million pre-development term sheet for Kanyika Niobium Project
Globe is aiming to complete an updated bankable feasibility study (BFS); complete the detailed front-end engineering design (FEED); and work on certain pre-implementation activities for the Kanyika project.
Facility details
Up to US$1,200,000 at a 20% interest rate is available to be drawn in multiple funding portions as follows:
- February 15, 2025 - US$200,000;
- March 1, 2025 - US$200,000;
- March 15, 2025 - US$200,000;
- April 1, 2025 - US$300,000; and
- April 15, 2025 - US$300,000.
The term is for eight months after the first drawdown.