Globe Metals jumps on offtake deal

Shares in West Perth-based Globe Metals & Mining have jumped 25 per cent on news of a potential offtake deal over its Kanyike project in Malawi.

The company's share price jumped from 9.6 cents to last trade at 12c at 12:49 AEDT.

The company said it has signed a memorandum of understanding with an unnamed customer for the supply of 350 tonnes of niobium metal, or about 12 per cent of Globe's planned annual production from Kanyika of 3000t of niobium metal.

First production is slated for late 2011.

Globe intends to produce two products from the prioject; ferro-niobium for the steel industry and niobium raw materials for the non-steel industry used for downstream processing into high-purity metals and alloys.

"This is an outstanding development for the Company. This is our first product supply MOU, and we expect more to follow as we continue on the path to production," managing director Mark Sumich said.