On Monday, MetalNRG (NEX:MNRG) and Mkango Resources (LSE:MKA) announced they have entered into a non-binding heads of terms agreement regarding the Thambani Exclusive Prospecting Licence in Malawi. The deal would give MetalNRG the chance to earn up to a 75pc interest in the Thambani uranium licence by spending up to $2m on exploration over a period of three years.
The exploration campaign would be split into three tranches or ‘workplans’, each 12 months long. During the initial workplan, MetalNRG must spend $500k on exploration at Thambani which will include 1.500 metres of drilling. On completion, MetalNRG will earn a 25% interest in the uranium assets and operations. During the second workplan, MetalNRG could advance its interest in the project to 49pc following an additional investment of $700k on further development of the exploration area. Finally, the third workplan would entitle MetalNRG to a 75pc economic interest in the project subject to a further spend of $800k.
In the first half of 2017, Mkango carried out sampling at Thambani which is located in southern Malawi. Assay results returned high-grade uranium, tantalum and niobium values and new areas of mineralisation were identified.
Commenting on the news, Rolf Gerritsen CEO of MetalNRG said:
"The Heads of Terms Agreement entered into with Mkango enables us to position the Company as a focused uranium play with an exciting exploration opportunity in Thambani. The combination of the Thambani project along with our, close to production, uranium project in the Kyrgyz Republic will put MetalNRG in a strong position in the London market."
Alexander Lemon, President of Mkango Resources, said: "This transaction is another milestone for Mkango and for Malawi, and is further endorsement of the Company's strategy and potential. With MetalNRG funding the Thambani uranium project and the previously announced transaction with Talaxis funding Mkango's Songwe Hill rare earths project, Mkango shareholders can look forward to an exciting year of news flow and progress in two of the market's most strategic commodities at present. We are pleased to be working with MetalNRG, and look forward to a new drilling program being carried out at Thambani."
Author: Stuart Langelaan
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