Perth-based Globe Metals and Mining has opted to withdraw from a joint venture exploring in Mozambique to instead focus on its flagship niobium project.
Globe entered the joint venture with Mihandzu Minerals in 2011 to explore the Memba project for titanium, vanadium and iron. The initial agreement required Globe to spent $200,000 on exploration in the first year, in which it would earn a 20 per cent interest in the project.
After completing that initial requirement the company has now decided its money is better spent on furthering its niobium project in Malawi.
Acting chief executive Fergus Jockel said the company was transitioning to development at the Kanyika project in Malawi, in line with plans to begin production of ferro-niobium in 2014/15.
“The board’s decision to withdraw from its participation in the Memba JV was made following a thorough assessment of Globe’s expenditure across its project portfolio and operational overheads in Mozambique,” Mr Jockel said.
“While the company has a strong cash position of $19.8 million…the Board is progressing the strategy to focus on determining the development potential at Kanyika and allocating resources accordingly.”
