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