Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) soared more than 40% after it confirmed the Government of Malawi had signed a mining development agreement (MDA (TSX:MDA)) for its Songwe Hill rare earths project.
The signing ceremony was held at the Office of the President and Cabinet in Lilongwe, Malawi on Friday.
Hon. Minister Monica Chang'anamuno MP, Minister of Mining for Malawi stated: "The signing of the MDA (TSX:MDA) marks a momentous and significant occasion in the history of Malawi's mining sector.
“The MDA (TSX:MDA) signed by the Government of Malawi is a product of almost two years of hard work.
“I would like to thank the team at Mkango for their positive partnership spirit during the negotiation period.
Alexander Lemon, Mkango’s president, added: "We are very pleased to announce this major milestone for the Company and the nation of Malawi.
“Songwe is one of the very few rare earths projects globally to have completed a definitive feasibility study and hold a signed and approved [global standard] Environmental, Social, Health Impact Assessment.
“The key rare earths being targeted at Songwe are neodymium, praseodymium, dysprosium and terbium which are all critical for the green transition.”
Shares jumped 1.85p to 6.45p.