African critical minerals exploration and development company NeoTerra Group has applied for a $5-million grant under the US-Africa Strategic Investment Program to support the assessment of a strategic opportunity to expand the size and scope of its Monte Muambe fluorspar project, in Mozambique.

The London-listed company is currently progressing the development of a 50 000 t/y fluorspar mining operation, but says there is a strategic case to assess a larger-scale fluorspar operation, supported by an increased mineral resource at Monte Muambe.

Establishing a larger resource and feedstock base could, in turn, support additional downstream processing and value addition in Mozambique.

NeoTerra intends to use the $5-million in funding, if granted, for additional resource drilling to increase the mineral resource from the current 716 000 t of calcium fluoride (CaF₂) contained to four-million tonnes of CaF₂, which will provide the opportunity to increase the production capacity and/or the life-of-mine; to conduct a regional fluorspar and fluorine market study, including a detailed assessment of potential additional fluorspar resources and feedstock sources in Mozambique; and to undertake a conceptual feasibility study to assess the potential viability of a hydrofluoric acid production facility in Mozambique, building on identified feedstock from Monte Muambe.

The US-Africa Strategic Investment Program is administered by the US Department of State's Bureau of African Affairs and aims to facilitate investment in African critical mineral supply chains. It has about $500-million in funding available, with individual awards ranging from $5-million to $50-million. 

"Our current development plan provides a clear route towards an initial 50 000 t/y fluorspar operation at Monte Muambe. We now see an opportunity to build on this foundation, in a modular fashion, and assess the potential for a broader development.

"By increasing the Monte Muambe mineral resource and assessing additional sources of fluorspar feedstock across the region, we want to determine whether sufficient scale exists to support downstream hydrofluoric acid production in Mozambique," says NeoTerra CEO Cédric Simonet.

He adds that NeoTerra's application for the $5-million grant is in line with the company's objective of securing solid strategic partnerships and non-equity-dilutive funding for Monte Muambe.

NeoTerra points out that the grant application builds on its existing relationship with the US government in connection with Monte Muambe. The company has already secured a $1.88-million grant from the US Trade and Development Agency to advance the rare earths component of Monte Muambe through the prefeasibility stage.

In parallel, NeoTerra continues to pursue strategic partnerships and potential funding opportunities for the gallium component of the Monte Muambe project, with a particular focus on US-aligned parties seeking secure and responsible sources of critical raw materials.