Globe Metals & Mining (ASX:GBE) has secured funding from its major shareholder China Mineral Exploration and Development Bureau (ECE) that will be used for exploration activity at the projects in Malawi.
ECE will substantially fund all of Globe's exploration activity at its projects in Malawi including the Kanyika Niobium project, the Chiziro graphite project, and the Machinga and Salambidwe rare earth projects.
The two parties entered into a binding memorandum of understanding under which Globe will maintain control of all the exploration activities and ECE will provide up to 10 staff to be based on site and start work this month.
Globe will reimburse ECE for exploration expenditure related to each project upon identification of JORC resource that leads to a pre-feasibility study.
The Kanyika niobium project will remain priority for the company, where it will focus on regional mineralised targets which form part of the MoU, and outside of those resources, which are currently subject to assessment in a DFS.
Globe had a cash balance of $16.63 million at the end of the March 2013 quarter against a current market capitalisation of $16.60 million, leaving its share to trade on par with its cash backing at $.075.
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