Can I start by saying that I agree with you on many aspects of your post and I believe you are right in your conclusions but partly for the wrong reasons. With respect please let me explain.
1. Firstly while you have quite correctly pointed out that certain minerals discovered within Globes tenements are not in fact rare earths, it is just as important to acknowledge those other minerals within Globes tenements which are very valuable rare earths such as Dysprosium and Europium amongst others. Both Machinga and Monte Muambe are heavy rare earth projects. Check them out.
For those in doubt about the relevance of rare earths to Globe check the recent news releases from Globe themselves. In fact find me a GBE report that doesn't talk about HREO, LREO etc. Furthermore take a look at the most recent Quarterly Activities Report issued by GBE only 2 months ago. The first page provides what Globe views as the highlights. 80% of the highlights talk of rare earths. The remaining 20% talks about the ECE proposal and the placement. Tells you something doesn't it.
2. Secondly, you said "ECE are doing this deal for Kanyika" and this is where I agree with you but for different reasons. I believe that ECE intends to progress Kanyika and put on hold rare earth production at Machinga and Monte Muambe.
In his investor update Mark goes out of his way to state "The likelihood of the Kanyika Niobium Project being �mothballed� defies market realities" thus confusing the issue. I haven't read anything from anybody here indicating they believe ECE has a reason to "mothball" anything other than rare earth projects yet Mark tries to twist the issue by saying that there is no reason to mothball the Niobium project but makes absolutely no comment on the rare earths project which was the point so many people made in great delay. Notice that he neither addresses the real issue or deny that ECE may have good reason to hold back on our rare earths. Can't possibly believe that he didn't understand the point so why make a comment which is so blatently irrelevant unless you want to confuse investors ?
While I completely agree with you that there is more to Globe than just rare earths lets not pretend that after several failed acquisition attempts on other rare earth companies that it is a complete coincidence that Globe found a Chinese partner and that ECE are only interested in our Niobium. In my opinion ECE are no less interested in our rare earths than the fox is in my chickens.
If they were only interested in Kanyika then why not negotiate for a stake in that project ? Why insist that they need to dominate our entire company, its board and leave shareholders with no rights ? They need to remove our rights because in my opinion they are likely to do something that we will not like very much at all. Let them buy 51% of Kanyika.
I therefore have a solution. If they are primarily interested in Kanyika then let them buy 51% of Kanyika from us rather than taking control of our company. I have absolutely no problem with that.
Here is a few highlights from Globes report to save everybody some time:
"At least three separate zones of HREO-Nb-Ta-Zr mineralisation with very high dysprosium (Dy2O3)"
"Very high ratio of HREO:TREO, peak 39%, average 32%; very high ratio of Dy2O3:TREO, peak 3.9%, average 3.3%"
"A fresh rock-chip sampling program has identified numerous new zones of HREO-enriched mineralization, with many samples containing high ratios of the sought after elements dysprosium and europium (Eu2O3)"
"Europium and dysprosium prices have risen astronomically over the last 5 years to $640 and $305 per kg respectively"
"Much of the REO mineralisation in the carbonatite complex at Mount Muambe appears to be unusually enriched in heavy rare earths (HREO)"
GBE Price at posting:
31.5¢ Sentiment: None Disclosure: Held
(20min delay)