Mkango Resources announced that it has signed a non-binding agreement with MetalNRG, for Thambani exclusive prospecting license in Malawi.
The agreement enables MetalNRG will earn up to a 75% interest in the project, by spending up to US$2,000,000 on exploration. Both the parties will enter into a binding definitive agreement on or before the 30th June 2019.
Under the terms of the agreement, MetalNRG must spend $500,000 on exploration within the Thambani Licence within 12 months of the date of the definitive agreement, including a drilling program totaling approximately 1500m, which will be the initial workplan.
The completion of the initial workplan will allow MetalNRG to gain a 25% economic interest in the Thambani license, limited to uranium only.
After the completion of the initial workplan, MetalNRG may choose to further explore and develop the Thambani License by spending US$700,000 over the subsequent 12 months, which will be the second workplan. The completion of the second workplan will enable MetalNRG to a 49% economic interest in the Thambani license, limited to uranium.
Following the completion of the second Workplan, MetalNRG may opt to further explore and develop the Thambani license by spending $800,000 over the subsequent 12 months, which will be the third workplan. The completion of the third workplan entitles MetalNRG to gain a 75% economic interest in the Thambani Licence, limited to uranium.
Mkango said that it holds a right of first refusal on 100% of the offtake for uranium and other minerals.
Mkango Resources president Alexander Lemon 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.”