Anadian miner, Mkango Resources Limited, has said it will soon commence a feasibility study of its Songwe Hill Rare Earths Project in Phalombe.
This follows the receipt, last week, of both shareholder and final Toronto Stock Exchange (TSX) Venture Exchange approval and investments totalling £6 million by its subsidiaries.
Information posted on its website Thursday indicated that Talaxis has invested £5 million into Mkango subsidiary, Lancaster Exploration Limited, in return for a 20 percent interest in Lancaster.
“Upon completion of the feasibility study for Songwe and subject to completion of the definitive documentation, Talaxis will have the option to acquire a further 26 percent interest in Lancaster, increasing its aggregate interest to 75 percent,” Mkango said.
The miner said Talaxis will do this by arranging funding for 100 percent of remaining project development costs, including funding the equity component thereof.
“The investment into Lancaster will fund the initial phase of the feasibility study for Songwe, including an extensive drilling programme from the second quarter of 2018, in parallel with ongoing processing flow sheet optimisation and work in relation to the Environmental, Social and Health Impact Assessment,” Mkango said.
Talaxis has also invested £1 million into a new Mkango subsidiary, Maginito Limited, in return for a 24.5 percent interest in Maginito.
Mkango Resources Limited was also awarded a mining licence for Thambani in Mwanza.
Last year, Mkango said it plans to start rare earth minerals mining at Songwe Hill in 2020.
Mkango Chief Executive Officer, William Dawes, said his firm expects to catch an expected leap in demand for metals.