Kazera Global PLC (LON:KZG) has received a permit to draw water from the Orange River for the Namibia Tantalite Investment mine.
The company has also received encouraging preliminary drilling results from boreholes at Lepidolite and Homestead.
WATCH: Kazera Global boss in conversation with Proactive's Andrew Scott
Kazera said the water clearance was a significant step forward for mine operator Aftan and a major endorsement by the Namibian government of the project.
The receipt of the certificate will help alleviate any concerns regarding future water availability, Kazera said.
Exploration Results
The boreholes at Lepidolite and Homestead also confirmed lithium and tantalum mineralisation.
Lepidolite saw lithium grades of up to 2.86% and 603 parts per million of tantalum, while Homestead saw 8,159 ppm tantalum in one borehole.
Larry Johnson, Kazera’s chief executive, said: "The certificate to access the Orange River is significant and a major positive.
“It is not only endorsement at the highest level for the future of the project but also ensures water supply to the mine as we continue to meet our ramp-up schedule.
“To achieve over 8,159 ppm Ta2O5 over 1.68m is very encouraging and demonstrates the wider potential within the licence.
“We will consolidate these results with further drilling during the year, coupled with channel sampling within the Homestead underground ore body.”
Kazera posted a loss of £480,000 (2016: £418,000) and had cash balances of £2.56mln at the end of the period.
The company raised £3.75mln ahead of a resumption of trading on AIM in February.
Kazera holds a 75% stake in African Tantalum (Aftan), which operates the Namibian Tantalite Investment Mine (NTI).