Globe Metals & Mining (ASX: GBE) has appointed the existing Non-Executive Director, Shasha Lu, to the position of Deputy Chief Executive Officer - effective immediately.
Lu was first appointed to the Globa Metals board in August 2011, as a nominee of East China Mineral Exploration and Development Bureau (ECE).
Lu will be responsible, together with the Managing Director, for managing Globe Metals increasing interests in China, encompassing customer, financing, partnering and investor relationships and opportunities in the country - along with senior management responsibilities.
Previous experience for Lu includes the position of Executive Director and CEO of Hong Kong East China Non-Ferrous Mineral Resources Co Ltd, a subsidiary of ECE, and is currently a Non-Executive Director (formerly Executive Director) of Arafura Resources (ASX: ARU).
The appointment is designed to enable Globe Metals to leverage its relationship with ECE as a conduit into China, among other things.
Lu will continue to be a Non-Executive Director of China Africa Resources Plc, an AIM-listed company based in London.
Globe Metals progresses step towards 5% share buyback
Recently Globe Metals initiated a process to commence a share buy back, and last month 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 $0.17.
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.
Proactive Investors has been opining that Globe Metals & Mining has been trading under cash backing and is undervalued.
The buyback is an excellent way of using excess cash for the benefit of shareholders, to close the valuation gap.