NeoTerra Group plc has applied for a US$5 million grant to assess expansion of its Monte Muambe fluorspar project in Tete Province, northwest Mozambique.
The company, which is targeting a 50,000 tonnes-per-annum fluorspar mining operation at the rare earth elements site, submitted its application under the US-Africa Strategic Investment Program.
NeoTerra will use the funds to complete further resource drilling to increase the fluorspar mineral resource estimate from 716,000 tonnes of calcium fluoride (CaF2) to 4 million tonnes contained.
Additional identified resource could increase the production capacity and/or the life of mine.
Other work would include a study on the regional fluorspar and fluorine market, while a conceptual feasibility study will focus on a potential hydrofluoric acid production site in Mozambique, adding to identified feedstock from Monte Muambe.
NeoTerra is currently finalising its scoping study for the 50,000 tpa operation and has started the environmental permitting process for mining operations.
Chief executive officer Cédric Simonet said: “The grant application is in line with our objective of securing solid strategic partnerships and non-equity-dilutive funding for Monte Muambe and, if successful, will allow us to assess and de-risk this expanded opportunity while we continue to progress the initial 50,000 tpa fluorspar development.”
NeoTerra’s application follows the US$1.875m grant secured in February from the US Trade and Development Agency for the rare earths component of Monte Muambe through the prefeasibility stage.
The company added it continued to pursue strategic partnerships and potential funding, particularly from US-aligned parties, for gallium from Monte Muambe.