How Globe Metals’ Licence Expansion and $7M Raise Propel Kanyika Forward

Regulatory Milestones and Licence Expansion

Globe Metals & Mining Limited has secured a crucial 12-month extension from Malawi’s Mines and Minerals Regulatory Authority, allowing the Kanyika Niobium Project to commence substantial mining operations by September 2026. This extension provides the company with vital certainty to complete infrastructure and community resettlement milestones, aligning project timelines with national infrastructure delivery.

In a significant broadening of its resource base, Globe’s Large-Scale Mining Licence was formally amended to include four additional critical minerals, zircon, hafnium, neodymium, and praseodymium. These minerals are strategically important for clean energy technologies and advanced materials, enhancing Kanyika’s exposure to high-growth markets beyond niobium and tantalum.

Strengthening Local Leadership and Community Alignment

The appointment of Dr Joseph Mkandawire, former Principal Secretary of Malawi’s Ministry of Mining, to the board of Globe Metals & Mining Africa Ltd. marks a strategic move to deepen local expertise and regulatory alignment. This leadership addition is expected to facilitate smoother engagement with government and community stakeholders, critical for advancing the project responsibly and in line with Malawi’s Vision 2063 development goals.

Capital Raising and Financial Position

Post-quarter, Globe completed the first tranche of an A$8.67 million private placement, raising A$6.96 million from a Hong Kong-based institutional investor. Alongside this, a US$540,000 loan was fully converted to equity, improving the company’s capital structure and reducing debt exposure. Discussions continue with a major shareholder on further loan-to-equity conversions, which would further strengthen financial flexibility ahead of the Final Investment Decision.

Despite these positive funding developments, Globe’s cash at quarter-end was modest at A$0.31 million, with total debt standing at A$5.7 million. The company’s ability to manage working capital prudently and complete the second tranche of the placement will be critical in sustaining operations and advancing early works.

Strategic Importance of Niobium

The U.S. Geological Survey’s recent Draft 2025 Critical Minerals List ranked niobium as the 10th most critical mineral, underscoring the potential US$10.4 billion GDP impact of supply disruptions. Given Brazil’s dominance in global niobium supply, Globe’s Kanyika Project offers a strategically important alternative source. This recognition elevates the project’s profile among investors and policymakers focused on securing diversified critical mineral supply chains.

Next Steps and Project Outlook

Globe is progressing engineering optimisation and early contractor involvement activities, with the Bankable Feasibility Study (BFS) expected to be released once partner negotiations and procurement processes are sufficiently advanced. While no binding construction contracts are yet in place, these preparatory steps aim to de-risk the project execution phase ahead of the Final Investment Decision.

Overall, the September quarter report reflects solid operational, regulatory, and financial progress that positions Globe Metals & Mining to move confidently into the next phase of Kanyika’s development, albeit with ongoing challenges related to funding and execution risk.