African-focused resource company Globe Metals & Mining (ASX: GBE) has placed 5,400,000 shares at a price of $0.25 each to raise A$1,350,000 for working capital purposes.
The funds will ensure normal operations continue prior to finalisation of the strategic partnership and A$41 million placement to East China Mineral Exploration and Development Bureau (ECE).
The placement is scheduled to completed in early February 2011. The company now has adequate working capital to manage any unforeseen delays in completing the transaction.
On November 15 Globe entered into a binding agreement to form a strategic partnership with ECE, a Chinese State-Owned Enterprise.
ECE will make a A$41 million investment in Globe for a 51% equity stake at $0.345/share and are committed to assisting Globe in securing project funding for the Kanyika Niobium Project in central Malawi from Chinese banks and funds.