Globe Metals & Mining (ASX: GBE) will increase the company's exploration exposure to titanium and iron in Mozambique by exercising an option over an additional five licenses.
The option is to proceed with the joint venture to acquire up to a 90% interest through staged exploration in the licenses 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.
News flow for Globe Metals is set to increase, with results from a 2011 trenching and soil sampling program forecast for delivery to the market later this month.
Looking forward, a trenching program and regional exploration program will commence in the area in March, followed by initial reverse circulation drilling around mid-2012. Providing a boost to the area, the project is also set to benefit from major infrastructure upgrades in the country.
The Memba licence area is dominated by Proterozoic gneissic rocks of various compositions that have an overall east-west strike and moderate northerly dip.
A historical report by a Serbian geological team documented an outcropping ilmenite unit over a 10 kilometre strike length with widths ranging between 6 metres to 20 metres.
Share price does not reflect its intrinsic value
Globe Metals is in an enviable position of having $39.2 million cash in the bank at the end of 2011, with the well funded company announcing a share buy back last month.
Globe's cash position equates to a cash backing of $0.18 per share, and what will be of interest to investors is the company's shares last changed hands at $0.175.
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 at the time: "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."