TSXV-listed Mkango Resources has announced that it and Talaxis have signed the definitive agreements in relation to the transaction announced on November 16, 2017, whereby Talaxis will acquire up to a 75% interest in Lancaster Exploration.
Lancaster Exploration is the holder of the licence for the Songwe Hill Rare Earths Project in Malawi. Mkango Resources could also own up to 49% of Maginito.
Talaxis and Mkango Resources will be each other’s preferred partner for all rare earths projects worldwide and for all activities in Malawi.
“Following the signing of the definitive agreements, Mkango Resources has a clearly defined pathway to production against the backdrop of a strong outlook for rare earths geared to the electric vehicle market,” says Mkango Resources CEO, William Dawes.
“We look forward to working with Talaxis to develop Songwe as a long term, sustainable producer of rare earths and complementary downstream technologies through Maginito. The next major milestone is an updated resource for Songwe, which triggers the next £7 million investment from Talaxis.”
“As the market for permanent magnet technology continues to grow rapidly, access to reliable sources of neodymium becomes key. As such, we are pleased to sign the definitive agreements. Our focus is to ensure that our clients can benefit from a supply chain specialized in technology metals that is reliable and resilient to external shocks,” comments executive director of Talaxis, Daniel Mamadou.