Globe Metals & Mining (ASX:GBE) shares boosted 138pc as Kanyika Niobium licence falls within reach

• Globe Metals & Mining (GBE) shares spike after the Malawi Government recommends the grant of a mining licence for GBE’s Kanyika Niobium Project
• GBE regards the approval as a critical step in the process and expects the Minister to grant the licence within 45 days
• Globe also needs to complete a development agreement with the government, which has suffered delays due to COVID-19
• The company anticipates the licence will have a 25-year lease term once granted
• Globe Metals & Mining shares are up 131 per cent to trade at nine cents

Globe Metals & Mining (GBE) shares have spiked after the Malawi Government recommended the grant of a mining licence for GBE’s Kanyika Niobium Project.

GBE said it received formal notification from the Principal Secretary of Mining advising the Malawi Government’s Mineral Resources Committee had reviewed Globe’s application for Kanyika Niobium and recommended the grant of a mining licence.

The company regards the approval as a critical and formal step in the process, with the Minister “obligated” to follow the recommendation of the Mineral Resources Committee and grant the licence within 45 days.

In terms of next steps, Globe will need to wait until it receives the mining licence and also complete a development agreement with the Government of Malawi.

It is unclear how long this process could take, however negotiations are continuing in good faith with the Malawi Government, according to Globe’s website, despite COVID-19 delays and changes to key government personnel.

The company anticipates the licence will have a 25-year lease term once granted.

Globe Managing Director Alistair Stephens said the company had been working diligently to secure the licence.

“Formal approval from the Malawi Government’s Mineral Resources Committee to grant the Mining Licence is a significant step forward for the Company’s goal of becoming a niobium producer,” he said.

“I am particularly pleased for the Globe team who have stayed the course despite many obstacles in recent times, not least of which has been the COVID19 pandemic which has made face to face consultation difficult.”

Globe Metals & Mining shares are up 131 per cent to trade at nine cents at 11:37 am AEST.