Altona Rare Earths PLC (LSE:REE) shares traded up on Monday, after a strategic and operational update covering its Monte Muambe project in Mozambique confirmed forward momentum.
The company said it has submitted a proposal to the US Trade and Development Agency for funding support of the rare earths prefeasibility study.
It follows a policy shift in Washington that has seen the US Department of Defence commit US$400 million to support rare earths supply chains and reduce dependency on China.
Altona said it expects progress on its proposal in the coming weeks.
"I welcome the renewed engagement with the US Government, which highlights the strategic importance of Monte Muambe in the global critical minerals landscape," said chief executive Cedric Simonet.
"Securing long-term support from a partner of this calibre would not only validate the potential of our project but also place Altona in a stronger position to advance discussions with other strategic stakeholders across the value chain."
Altona is presently preparing to start a 2,000-metre drilling programme at Monte Muambe in September.
In London, Altona shares remained on the front foot by midday, at 1.67p, though in early deals had seen as high as 2.09p per share.