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Mkango Resources Gains Two Year Renewal For Phalombe Licence

Mkango Resources (CVE:MKA) has been granted a two-year renewal of its Phalombe licence in south-east Malawi, home to its flagship Songwe Hill rare earth project.

The news is latest in a series of major milestones for the Canada-listed junior that included last autumn's better-than-expected maiden resource.

The main priority currently is the completion of scoping metallurgical test work in parallel with mineralogical studies, the company said.

Chief executive William Dawes added: "Mkango has successfully delivered on the objectives outlined at the time of listing and is now focused on progressing the Songwe Hill project to the production stage.

"Mkango believes Malawi is one of the most favourable jurisdictions to be operating in Africa and has the potential to become one of Africa's foremost rare earth producers."

Using a base case cut-off grade of 1% total rare earth oxides there are 13.2 million tonnes in the indicated category grading 1.62% total rare earth oxides, while the inferred resource stands at 18.6 million tonnes at 1.38% TREO.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.