Mkango Resources announced that Talaxis has invested an additional £7m into Lancaster Exploration (Lancaster), which is the holder of the licence for Songwe Hill rare earths project.
Image: Mkango Resources secures £7m investment to complete Songwe feasibility study. Photo courtesy of Khusen Rustamov/Pixabay.
As a result of this investment, Talaxis’ equity interest in Lancaster will increasefrom 20% to 49%, with Mkango holding the remaining 51%.
The investment by Talaxis will fund completion of the Feasibility Study for Songwe, which is currently underway and expected to be completed in 2020.The updated resourcedescribed in the Technical Report will form the basis for the Feasibility Study.Following completion of the Feasibility Study, Talaxis hasan option to acquire a further 26% interest in Songwe by arranging financing for project development including funding the equity component thereof.
William Dawes, Chief Executive of Mkango stated:“Mkango is uniquely positioned in the rare earths sectorwith an advanced stage rare earths project in a favourable jurisdiction and a strong strategic partnership with Talaxis providing the financial means and network of relationships throughout Asia and elsewhere to deliver a successful project.”
Alexander Lemon, Presidentof Mkango stated: “This project will be transformational for Malawi, empowering local communities and validating Malawi’s credentials as one of Africa’s premier investment destinations. We are very appreciative of the support we continue to receive from the Government of Malawi and all stakeholders as we progress through the Feasibility Study.”
Daniel Mamadou, Director of Talaxis and co-Head of Technology Metals at Noble Group said:”Rare earths play a core role in our portfolio of technology metals. High performance electric motors and permanent magnet applications drives the demand for neodymium and praseodymium, making these elements key enablers of EV policies globally. The results of the drill campaign at Songwe are encouraging and point towards the potential of creating a world class asset.
“We are pleased to extend our strategic partnership with Mkango and to increase our investment in Songwe, which is one of the few advanced stage rare earths projects currently. Welook forward to collaborating with Mkango to ensure this project is developed to its full potential.”
Source: Company Press Release