JOHANNESBURG (miningweekly.com) – TSX- and Aim-listed Mkango Resources is well positioned to advance its projects following investments by Noble Group subsidiary Talaxis, the exploration and development company outlined in a management discussion and analysis report for the year ended December 31, published on Friday.
Mkango is progressing the feasibility and development phases of its Songwe Hill rare-earths prospect, in Malawi, with the initial feasibility study phases kicked off by the injection of £5-million by Talaxis in exchange for a 20% interest in the project.
The initial phases of the feasibility study include a diamond drilling programme and the publication of an updated mineral resource estimate, as well as metallurgical optimisation and work on the ongoing environmental-, social- and health-impact assessment.
Talaxis is fully funding the study by investing £12-million for a 49% interest in the project through Mkango’s local subsidiary and licence owner Lancaster Exploration.
A further £7-million will be invested upon conclusion of a definitive joint venture agreement and the publication of the updated mineral resource estimate for an additional 29% stake.
Mkango aims to develop the Songwe Hill project, along with complementary downstream opportunities in the rare-earths supply chain, through Maginito, both of which are in partnership with Talaxis.