(Ecofin Agency) - Last, week, Mkango Resources announced, it has concluded with Talaxis Ltd, subsidiary of Noble Group, a definitive agreement whereby Talaxis will acquire 75% interest in Songwe Hill Rare Earths project in Malawi.

This transaction was previously announced on November 2017 while its completion was subject to a number of conditions.

Mkango revealed in a statement that Talaxis invested £5 million in January 2018 to acquire 20% interest in its subsidiary-Lancaster Exploration- that manages the Songwe Hill project. If Mkango publishes an NI 43-101 technical report in relation to the updated Mineral Resource Estimate,  (following its upcoming drilling program), Talaxis will invest £7 million to fund the feasibility study and increase its interest to 49%.

Once the feasibility study is completed (by the end of 2019), Talaxis will have the option to increase its interest to 75%, by arranging funds for the project’s entire remaining development cost.

“Mkango has (ed: now) a clearly defined pathway to production against the backdrop of a strong outlook for rare earths geared to the electric vehicle market,” CEO William Dawes commented.

Let’s recall that Mkango Resources plans to start rare earth production in Malawi in 2020.  

Louis-Nino Kansoun