Globe Metals & Mining Limited (ASX: GBE) ('Globe' or 'Company') is pleased to announce that the Company has received a non-binding letter of intent (LOI) from Ecobank Malawi Limited (Ecobank) for a $US15 million loan facility subject to satisfactory outcome of due diligence, approval of Ecobank's credit committee, and execution of all formal facility and security documentation.
Kanyika Project - Phase 1 Capital
As announced on 28 May 20241 , the total funding required for Phase 1 first production, including working capital and indirect costs has been estimated at $US46 million. The Ecobank facility constitutes approximately 33% of the total funding requirements for Phase 1.
Paul Smith, Globe's CEO commented: 'The signing of the Ecobank Malawi Limited LOI for the US$15 million facility marks a transformative moment for Globe, paving the way for the development of the Kanyika Project in Malawi. The funding will support key aspects of the capital development of the project. This funding, together with our advanced discussions on equity funding and pre-shipment funding is now crystalizing the funding package for the Phase 1 development as previously announced. The facility constitutes 33% of the total Phase 1 capital requirement, inclusive of indirect capital cost. We look forward to working with Ecobank Malawi Limited and its strategic partners on this exciting project, and the associated de-risking of the project for other partner funders'.
Dr. Raymond Fordwuo, Managing Director of Ecobank Malawi, said: 'We are excited to take the first steps forward with this Letter of Intent, to support the Kanyika Project, and contribute to advancing the Malawi Government's Agriculture, Tourism, and Mining (ATM) Growth Strategy. This project aligns with Ecobank's purpose of driving financial integration within Malawi and across Africa. By backing important projects like Kanyika, we are supporting the local economy and showing our commitment to building a better future through innovative financial solutions.'
Material details of the LOI Ecobank proposes to provide a term loan in the principal amount of US$15 million. The purpose of the loan is to develop the Kanyika Niobium Project. The loan term will be for a period of 5 years (60 months), including a 24-month moratorium. Repayments will be made by equal monthly instalments of both principal and interest, starting immediately after the expiry of the 24-month moratorium. The facility documents and covenants will contain clauses and provisions customary for transactions of this nature. Ecobank's commitment to provide the loan facility will be subject to the following conditions: o satisfactory completion of due diligence, including review of financial statements, business plans, and other relevant information; o negotiation and execution of definitive loan documentation acceptable to both parties; o approval of the loan by Ecobank's approving authorities and o receipt of necessary regulatory approvals. The LOI will remain valid until 31 October 2024 and is non-binding
Who is Ecobank Malawi Ecobank is an affiliate of the Ecobank Group, the leading private pan-African banking group. Ecobank Malawi offers a comprehensive suite of financial services and solutions to its Consumer, Commercial, Corporate and Investment Banking clients. The Ecobank Group (or 'Ecobank Transnational Incorporated' or 'ETI'), is the leading private pan-African banking group with unrivalled African expertise. The Group was established in 1985 with a pan-African vision and mandate to drive financial integration. Today, Ecobank Group is present in 39 countries, including 35 in sub-Saharan Africa, an affiliate in France and representative offices in the United Kingdom, the United Arab Emirates and China. Its unique pan-African platform provides a single gateway for payments, cash management, trade and investment across the continent and beyond. The company offers a comprehensive range of financial products, services and solutions, including digital, through its Consumer, Commercial, Corporate and Investment Banking businesses. The Group employs 14,000 people, serving over 32 million customers, and is listed on the Nigerian Exchange, the Ghana Stock Exchange and the Bourse Regionale des Valeurs Mobilieres.
Contact:
Paul Smith
Chief Executive Officer
Tel: +61 8 6118 7240
Email: paul.smith@globemm.com
Nathan Barbarich
Corporate Finance
CPS Capital
Tel: +61 8 9223 2288
nathan.barbarich@cpscapital.com.au
Contact:
Julia Maguire
Tel: +61 2 8999 3699
Email: julia@thecapitalnetwork.com.au
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