Aim- and TSX-V-listed Mkango Resources on Thursday said Talaxis has, as planned, invested an additional £7-million into Mkango subsidiary Lancaster Exploration, which holds the licence for the Songwe Hill rare earths project, in Malawi.
This will increase Talaxis' stake in Lancaster to 49%, from the previously-held 20%.
The investment by Talaxis will fund the completion of a feasibility study at Songwe Hill.
The study is under way and expected to be completed in 2020.
"Mkango is uniquely positioned in the rare earths sector with an advanced stage rare earths project in a favourable jurisdiction and a strong strategic partnership with Talaxis providing the financial means and network of relationships throughout Asia and elsewhere to deliver a successful project," commented Mkango CEO William Dawes.
"Rare earths play a core role in our portfolio of technology metals. High-performance electric motors and permanent magnet applications drive the demand for neodymium and praseodymium, making these elements key enablers of electric vehicle policies globally.
"The results of the drill campaign at Songwe are encouraging and point towards the potential of creating a world class asset. We are pleased to extend our strategic partnership with Mkango and to increase our investment in Songwe, which is one of the few advanced stage rare earths projects currently. We look forward to collaborating with Mkango to ensure this project is developed to its full potential," added Talaxis director Daniel Mamadou.
Following completion of the feasibility study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development, including funding the equity component thereof.