Globe Metals and Mining, an African-focused resources company, has reached an at-the-market (ATM) equity facility with New York-based company Long State Investments, providing up to $20m over two years.
The company maintains complete control over the use of the ATM facility, including the number of shares to be issued, the minimum share price and the timing of each subscription.
This ATM facility does not obligate Globe to draw on the funds, nor does it restrict the company from seeking additional capital through other means.
As collateral, Globe intends to allocate 14 million shares to Long State at no cost, utilising its 15% placement capacity under Listing Rule 7.1.
If the company plans to use the ATM facility, it can dictate the terms of share sales to Long State, including setting a minimum issue price and specifying the number of shares Long State is allowed to sell within a certain time frame.
For this, the New York-based company will receive an $80,000 implementation fee and a 6% commission on all funds raised through the ATM facility.
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Your download email will arrive shortly
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalData
Additionally, Long State will provide Globe with strategic advisory services, which include facilitating connections with potential off-takers and strategic partners.
The partnership is said to be important for Globe’s Kanyika Niobium Project in Malawi, which holds a Large-Scale Mining Licence and has undergone extensive drilling and engineering studies to define mineralisation and improve the mining process.
Globe’s Kanyika Niobium Project will produce high-purity niobium pentoxide and tantalum pentoxide powders.
Globe CEO Paul Smith said: “The establishment of the ATM facility diversifies Globe’s funding base for the development of the Kanyika Project.
“This marks the initial step in our recently announced funding strategy, aimed at best supporting the project while minimising shareholder dilution.
“We further look forward to working with Long State on the development of key relationships associated with the project.”
