Mkango strikes mining development agreement with Malawi government

29th Jul 2024 08:03

(Sharecast News) - Mineral exploration and development firm Mkango Resources has inked a mining development agreement with the Malawi government for its Songwe Hill rare earth project.

Mkango said on Monday that its wholly-owned Lancaster Exploration subsidiary had signed an MDA with Malawian authorities, confirming the fiscal terms applicable to the project and enhancing options to create value for shareholders.

The AIM-listed group said the deal meant the Malawi government would receive a 5% royalty of gross revenues and 10% non-diluting equity interest in the project, while Mkango will pay just a 30% corporate tax rate and would be exempt from customs and excise duties.

Mkango president Alexander Lemon said: The Project when developed, is expected to be a game changer and transformational for Malawi and Mkango welcomes the very strong support it is receiving from the Government of Malawi and all stakeholders."

As of 1055 BST, Mkango shares had surged 45.65% to 6.70p.

Reporting by Iain Gilbert at Sharecast.com