Mkango Resources has secured £7 million from Talaxis for completion of a feasibility study for its Songwe Hill Rare Earths Project in Phalombe District.
In a statement, Mkango Resources says the investment, made available by Lancaster Exploration Limited would fund completion of the feasibility study, which is underway and expected to be completed in 2020.
The statement says that after completion of the study, Talaxis has an option of acquiring a further 26 percent interest in Songwe by arranging financing for project development including funding the equity component thereof.
In 2017, Mkango Resources reported by 2021, it will be producing 3,000 tonnes of rare earths per year. The figure includes 1,000 tonnes of praesodymium, neodymium, dysprosium and terbium, which are expected to become essential for the manufacturing of batteries, magnets and electric vehicles.