Australia’s Globe Metals to buy 90% in Mozambique fluorite project
miningweekly.com
By: Esmarie Swanepoel
5th October 2009
Updated 3 hours ago
JOHANNESBURG (miningweekly.com) – ASX-listed uranium and special metals company Globe Metals & Mining has entered into a joint venture (JV) agreement to acquire up to 90% in the Mount Muambe fluorite project, in Mozambique.
During the first two years of the JV, Globe would be required to conduct drilling of up to 3 000 m, or between 1 000 m and 2 000 m of drilling along with specified metallurgical test work, to earn a 50% stake.
During the third year, Globe would have to delineate a joint ore reserve committee compliant resource, to earn a 70% stake. The company would also have to provide a cash payment of $50 000, and 1,1-million new shares.
To raise its stake to 80%, Globe would have to conduct a feasibility study, and make a further $50 000 payment, and issue 1,1-million share. Globe also had the option to acquire a further 10% in the company, bringing its total stake to 90%, by paying an agreed-to price.
“This is a good transaction for Globe, the project has very positive existing exploration and metallurgical results, our initial expenditure obligations are very reasonable and we can manage the project from our existing base in Malawi,” said Globe executive chairperson Mark Sumich.
The agreement was subject to a two month due diligent period, at the end of which Globe would be required to pay the vendor $25 000. Additionally, Globe was required to issue the vendor a total of 2,3-million ordinary shares. |
