Mkango Resources, the rare earths exploration and development company has secured a £7 million investment to fund the completion of its feasibility study at Songwe Hill.

Malawi – The investment is from Talaxis Limited and is currently underway and expected to be completed in 2020. Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe Hill by arranging financing for project development including funding the equity component thereof.

William Dawes, CEO of Mkango Resources stated: "Mkango is uniquely positioned in the rare earths sector with 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, president of Mkango Resources commented: "This project will empower local communities and validate 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."

Positive signs of potential

Meanwhile, Daniel Mamadou, director of Talaxis and co-head of technology tetals 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 Hill are encouraging and point towards the potential of creating a world-class asset. We are pleased to extend our strategic partnership with Mkango Resources and to increase our investment in Songwe Hill, which is one of the few advanced stage rare earths projects currently. We look forward to collaborating with Mkango Resources to ensure this project is developed to its full potential," he added.

Further details on the scope and other aspects of the Feasibility Study, and plans for 2019 will be announced in due course.

Mkango Resources' primary business is exploration for rare earth elements and associated minerals in Malawi. The company holds interests in three exclusive prospecting licenses in the country: the Phalombe licence, the Thambani licence and the Chimimbe Hill licence. 

The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango Resources completed an updated pre-feasibility study for the project in November 2015 and a feasibility study is currently underway, the initial phases of which included a 10,900 m drilling programme and updated mineral resource estimate.

The main exploration targets in Mkango Resources' remaining two 100% held licences are in the Thambani licence – uranium, niobium, tantalum and zircon and, in the Chimimbe Hill licence – nickel and cobalt.

Mkango Resource's primary business is exploration for rare earth elements and associated minerals in Malawi. The company holds interests in three exclusive prospecting licenses in the country: the Phalombe licence, the Thambani licence and the Chimimbe Hill licence. 

The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. The company completed an updated pre-feasibility study for the project in November 2015 and a feasibility study is currently underway, the initial phases of which included a 10,900 m drilling programme and updated mineral resource estimate.

The main exploration targets in Mkango Resources' remaining two 100% held licences are in the Thambani licence – uranium, niobium, tantalum and zircon and, in the Chimimbe Hill licence – nickel and cobalt.