Globe Metals & Mining Limited (ASX: GBE) (“Globe” or “Company”) is pleased to announce the signing of a letter of intent with Affilips N.V. (“Affilips”) for up to 100 tonnes of refined high purity Niobium Pentoxide. The letter of intent outlines the framework for both parties to negotiate a binding offtake agreement for 32% of the Kanyika Niobium Project Phase 1 production.
Globe’s Chief Executive Officer, Paul Smith, commented: “This letter of intent with Affilips clearly demonstrates that Globe is making good progress in its stated intention to soon have offtake agreements in place for Phase 1 production at the Kanyika Project. Such agreements are a critical component of the Project’s development and the subsequent generation of sustainable cash flows. In the meantime, our efforts to put long-term offtake relationships like that forming with Affilips will be incorporated into the BFS update, which is now materially progressed.
We fully expect that this letter of intent is just the start of what will be a long and fruitful relationship between Globe and Affilips. The partnership is expected to give Globe an entrée to the lucrative European market, where Niobium is in demand by a host of specialized industrial companies. We fully expect to deliver further significant Kanyika Project development milestones over coming months.”
Letter of Intent opens way for binding offtake agreement
The letter of intent provides a framework for Globe and Affilips to negotiate a binding offtake agreement for the supply of up to 32% (approximately 100 tonnes out of 313 tonnes of total annual Phase 1 production) of the high purity Niobium Pentoxide production from Phase 1 of The Kanyika Niobium Project. The initial 3-year term of the agreement would commence from 1 May 2026, when the production of Phase 1 oxide is expected to be coming through.
The price paid by Affilips for this production will be negotiated depending on prevailing market conditions. Globe and Affilips will work towards executing a binding offtake agreement by Q2 calendar 2025, with a full offtake agreement expected by 1 September 2025. Kanyika BFS update (based on existing DFS)
The update of Globe’s bankable feasibility study (BFS) is now being progressed. It will be based on the definitive feasibility study (DFS) completed and announced to the market in mid calendar 20211. The Affilips letter of intent on offtake is a key step in the BFS process. Globe has elected to undertake the BFS using the Hydrofluoric Acid/Solvent Extraction (HF/SX) refining technology, which brings significant advantages to the Kanyika project, including:
• an approved DFS, based on HF/SX refining in Malawi, is already in place;
• an approved EIA in Malawi using the technology is also already in place;
• using the HF/SX technology will help fast-track the development of the project; and
• using the HF/SX technology better ensures that the product quality demanded by key off-takers is delivered.
This said, Globe continues to develop the chlorination refining route as an alternate competitive option to HF/SX refining
