Rare earth elements firm Mkango Resources has set itself up to advance its projects following investments by Noble subsidiary Talaxis, with feasibility and development studies at its Songwe Hill prospect in Malawi to come first.
An injection of £5m by Talaxis into Mkango, in exchange for a 20% interest in the Songwe-Hill project, will fund initial phases of its feasibility study, including a diamond drilling programme and the publication of an updated mineral resource estimate, as well as metallurgical optimisation and work on an ongoing environmental, social and health-impact assessment.
Talaxis will also fully fund the study with an additional £12m investment, for a 49% interest in the project through Lancaster Exploration, Mkango's local subsidiary and licence owner.
A further £7m will be poured into the project after the pair has inked a definitive joint-venture agreement upon the publication of the updated mineral resource estimate for an additional 29% stake.
Mkango is looking to develop its Songwe Hill project, along with multiple downstream opportunities in the rare-earths supply chain.
As of 1100 BST, shares had picked up 0.07% to 7.16p.