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Globe Metals & Mining Has Cash Backing Of $0.18 Per Share, To Buy Back 5% Of Issued Capital

Globe Metals & Mining (ASX: GBE) is currently extremely well funded with $39.2 million cash in the bank at the end of 2011, with the company initiating a share buy back.

Globe's cash position equates to a cash backing of $0.18 per share, with the company last changing hands at $0.17 intra-day today.

Subject to approval of ASIC, ASX and FIRB, (shareholders approval not required), the on-market buy-back is for up to 10.08 million shares, which represents around 5% of the issued capital, at no more than $0.23 per share.

Mark Sumich, managing director, commented: "Globe's current share price does not reflect its intrinsic value, let alone its cash backing.

"Accordingly, given our strong cash position and the relatively small amount of cash required to undertake the buy back, the board considers this to be a very appropriate use of our funds."

Globe is currently focused on Africa, and earlier in the month acquired the option for a 90% interest in five additional licences around the high grade ilmenite and vanadium-iron project at Memba in Nampula Province, Mozambique.

The company can earn up to an 80% interest in five additional licences through staged expenditure on exploration programs, with an option to purchase an additional 10% after five years from Mozambican company Siexpo Lda.

In total the five licences comprise about 1000 square kilometres in the highly active Nampula Province.

Globe is already proving the potential of its existing Memba project, in joint venture with Mihandzu Minerals, with previously released rock-chip samples showing very high grades of titanium with additional vanadium, including an average 47% titanium dioxide and up to 0.4% vanadium - which potentially is a valuable by-product.