Shares in Kazera Global PLC (AIM:KZG) rose 9.4% to 1.5p after an objection was withdrawn against the granting of mining rights for the area known as 2A in Alexander Bay, South Africa.
The company said it expects the granting of the mineral right to occur soon.
Situated a short distance north of its 70% owned Whale Head Minerals heavy mineral sand (HMS) operation at Walviskop, the 2A mining right covers roughly 3,095 hectares.
Around 170 hectares of this contain HMS deposits, Kazera said, which it sees as being suitable for immediate mining, subject to the construction of a suitable processing plant.
"The company believes the HMS deposits at 2A to be at least as rich as Walviskop, with sands continuously replenished by wind and tidal action."
Notification of the withdrawal has been provided to Whale Head following its commitment to update rehabilitation planning, scientific monitoring and reporting measures.
Kazera CEO Dennis Edmonds said: "2A is a highly prospective HMS area, and its development will materially expand Whale Head's operational footprint, creating the opportunity to dramatically scale HMS production. We will, naturally, update shareholders as soon as we have more news."