ASX-listed Globe Metals & Mining will raise up to A$8-million in a three-for-seven entitlement offer to fund work at its Kanyika niobium project, in Malawi.

Under the entitlement offer, Globe will offer up to 217.1-million shares at a price of 3.7c a share, with the company on Friday saying that its major shareholders, Apollo Metals Investment Co and Triple Talent Enterprises, had provided irrevocable commitments to take up their full entitlements under the offer, raising A$4.2-million.

Triple Talent has also provided irrevocable commitment to apply for A$1.3-million of additional new shares under the top-up facility, subject to Foreign Investment Review Board approval.

“Following the signing of the Mining Development Agreement (MDA),  and with a fully shovel-ready project this entitlement offer, together with the shortfall offer (if any), provides an exciting opportunity for new and existing shareholders to support the continued growth of Globe,” said CEO Grant Hudson.

“Since 2021, the company has continued to refine its plans, undertaking additional work to update the feasibility study for potential improvements and efficiencies that Globe has identified since the original feasibility study was released, and the company intends to use the funds raised under the entitlement offer to undertake additional work to validate these potential improvements and efficiencies.”