The cash infusion was triggered by the publication of a NI 43-101 technical report resource update a week ago.
READ: Read-across from Talaxis investment suggests Mkango is trading at a significant discount, says SP Angel
As a result of stumping up a further £7mln (C$12.3mln), Talaxis has increased its stake in Lancaster Exploration, which is the holder of the licence for the Songwe project in Malawi, to 49% from 49%; Mkango holds the remaining 51%.
The investment by Talaxis will fund completion of the feasibility study for Songwe, which is currently underway and expected to be completed in 2020. The updated resource described in the technical report published on 21 March will form the basis for the feasibility study.
Following completion of the feasibility study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging the financing for project development including funding the equity component thereof.
Alexander Lemon, president of Mkango, said the Songwe project would be “transformational for Malawi”, empowering local communities and establishing the country’s reputation as “one of Africa’s premier investment destinations”.
Daniel Mamadou, a director of Talaxis and the co-head of technology metals at Noble Group, said rare-earths play a core role in Talaxis's portfolio of technology metals.
“High-performance electric motors and permanent magnet applications drives the demand for neodymium and praseodymium, making these elements key enablers of EV [electric vehicle] policies globally,” Mamadou said.
“The results of the drill campaign at Songwe are encouraging and point towards the potential of creating a world-class asset. We are pleased to extend our strategic partnership with Mkango and to increase our investment in Songwe, which is one of the few advanced stage rare-earths projects currently,” he added.