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Mkango unlocks next £7M investment with technical report

Malawi-focused rare earths exploration and development company Mkango Resources (AIM:MKA) has unlocked an investment of £7 million (US$9.2 million) by filing the NI 43-101 technical report for its Songwe Hill rare earths project.
Mkango unlocks next £7M investment with technical report Mkango unlocks next £7M investment with technical report Mkango unlocks next £7M investment with technical report Mkango unlocks next £7M investment with technical report Mkango unlocks next £7M investment with technical report

Mkango will next be focusing on Songwe Hill's feasibility study

Staff reporter

The filing of the report was a condition for Noble subsidiary Talaxis to advance its next investment tranche in accordance with the May 2018 agreement between the two parties.
 
The funds will be used to complete the project's feasibility study (FS) by the end of 2019. 
 
In return, Talaxis' stake in the project will increase to 49%.
 
Under the May agreement, Talaxis can earn up to a 75% interest in Songwe Hill in exchange for development funds, and a 49% interest in Maginito Limited.
 
It previously invested £5 million for a 20% interest and this next £7 million will give it another 29%.
 
Once the FS is done, Talaxis can opt to acquire another 26% stake by arranging funding for the rest of the project development costs.

Mkango's shares were dpwn 2.94% Friday to 8.25p, which was also down from 8.9p six months ago.