NeoTerra increases stake in Mozambique rare earths project to 70%

British company NeoTerra has increased its interest in the Monte Muambe mining project in Mozambique’s Tete province from 51% to 70%. This move consolidates the company’s control over a deposit containing rare earths, fluorite, and gallium intended for industrial production.

The increase follows the completion of the third phase of a farm-out investment agreement originally signed in June 2021. As part of this phase, the company secured a 25-year mining licence for the extraction of fluorite and rare earths at the site.

NeoTerra Group Plc CEO Cédric Simonet stated that the increased stake strengthens the company’s position in a project of strategic importance. The company has previously received a US$1.875 million grant from the United States Trade and Development Agency (USTDA) to support development work on the rare earths component.