Mkango Resources has signed definitive agreements with ESG technology group CoTec Holdings for an investment first flagged in May last year.
CoTec has agreed to issue a two-year, £2mln secured convertible loan to Mkango with 5% interest, convertible into shares at 27p each or into subsidiary Maginito shares.
CoTec will also subscribe for a 10% equity stake in Maginito for an investment of £1.5mln.
Once the deals have closed, the two companies have agreed to cooperate on future rare earths opportunities, while Mkango Rare Earths UK will become a wholly owned subsidiary of Maginito.