Mkango Resources and Talaxis, have signed the definitive agreements whereby Talaxis will acquire up to a 75 percent interest in Lancaster Exploration the holder of the licence for the Songwe Hill Rare Earths Project in Malawi and up to 49 percent of Maginito.
Mkango Resources (TSXV:MKA,LSE:MKA), announced that it and Talaxis, a subsidiary of Noble Group (SGX:CGP), have signed the definitive agreements in relation to the transaction announced on November 16, 2017, whereby Talaxis will acquire up to a 75 percent interest in Lancaster Exploration, the holder of the licence for the Songwe Hill Rare Earths Project in Malawi, and up to 49 percent of Maginito.
As quoted from the press release:
Songwe Joint Venture
- In January 2018, Talaxis invested C$8.8 million in return for a 20 percent interest in Lancaster.
- Mkango will shortly commence a major drilling programme at Songwe and is targeting the completion of an updated mineral resource estimate by the end of 2018.
- On Mkango publishing an NI 43-101 technical report in relation to the updated mineral resource estimate, Talaxis will invest an additional C$12.1 million to fund the completion of a feasibility study for a further 29 percent interest, increasing its total interest in Lancaster to 49 percent.
- On Mkango completing a feasibility study for Songwe, Talaxis will have the option to acquire a further 26 percent interest in Lancaster, increasing its aggregate interest to 75 percent, by arranging funding for 100 percent of remaining project development costs, including funding the equity component thereof. If Talaxis exercises its option, Mkango will retain a 25 percent interest, free carried to production.
- Mkango is targeting completion of a feasibility study for Songwe by the end of 2019.
“Following the signing of the definitive agreements, Mkango has a clearly defined pathway to production against the backdrop of a strong outlook for rare earths geared to the electric vehicle market. We look forward to working with Talaxis to develop Songwe as a long term, sustainable producer of rare earths and complementary downstream technologies through Maginito,” said William Dawes, CEO of Mkango.