Globe Metals & Mining (ASX: GBE) has lodged its application to undertake an on-market buyback with the Foreign Investment Review Board (FIRB).
Subject to approval of ASIC, ASX and FIRB, the buyback is for up to 10.08 million shares, which represents around 5% of the issued capital, at no more than $0.23 per share.
Globe is extremely well-funded with $39.2 million cash in the bank at the end of 2011.
The company’s cash position equates to a cash-backing of $0.18 per share, with the company last changing hands at $0.18 intra-day today.
Globe is currently focused on Africa, and will increase its exploration exposure to titanium and iron in Mozambique by exercising an option over an additional five licences.
The option is to proceed with the joint venture to acquire up to a 90% interest through staged exploration in the licences, which are strategically positioned around the high grade Memba Titanium-Iron Project in the Nampula Province.
The land holding can be considered highly prospective due to rock chip samples averaging 47% titanium dioxide, along with an additional and separate high grade magnetite zone identified with two samples averaging 66.8% iron.
Globe is expecting to receive a response from FIRB in regards to its application by March 19 following which it will begin its buyback on April 2.
Originally published at: http://www.proactiveinvestors.com.au/companies/news/25455/globe-metals-mining-completes-first-step-towards-5-share-buyback--25455.html