Mkango Resources said the technical aspects of the feasibility study for its Songwe Hill rare earth project in Malawi are nearing completion.
The majority of engineering workstreams are 100% complete and other key workstreams are more than 90% finished, it said in a statement alongside its results for the quarter to end-March 2022.
Mkango noted that negotiations for the mining development agreement with the Malawi government are also well advanced while discussions are ongoing with potential strategic investors and offtake partners.
Elsewhere, at Nkalonje Hill, 14km from Songwe, Mkango said it will continue with the evaluation of the dykes at Target 1, including new sampling in order to trace the grade of the dykes along strike.
A soil/auger sampling and trenching programme is planned to ground-truth the geophysical anomalies at Target 2.
Losses in the quarter were US$2.78mln with cash at the end of the period of US$2.15mln.
The junior announced yesterday it was to receive a £3.5mln investment from CoTec Holdings, an ESG-focused investor in innovative technologies with the companies agreeing to collaborate on future investments in rare earth processing technology opportunities in the US.