NeoTerra Group Plc (LSE:TERA) has announced further progress at its Monte Muambe project in Africa after achieving a metallurgical milestone that supports the production of multiple critical mineral products. Test work has established a practical two-stage flotation process capable of separating silicates, oxides and carbonates to produce premium acid-grade fluorspar. The programme also demonstrated that gallium-bearing minerals respond differently during flotation, creating the opportunity to generate a pre-concentrated gallium feed while also supporting the recovery of a separate heavy rare earths concentrate.
The company is continuing additional gallium recovery studies at SGS Lakefield in Canada and COMEX in Poland to refine the processing flowsheet and maximise commercial returns. If successful, the work could enable three separate saleable product streams. At the same time, a US$1.875 million U.S. government-funded prefeasibility programme for the rare earths project is progressing towards execution, with leading engineering firms shortlisted and preparations for metallurgical sampling already under way.
NeoTerra believes changing global supply dynamics are strengthening the strategic importance of Monte Muambe. Increasing separation between Chinese and non-Chinese rare earth supply chains, together with tighter Chinese export restrictions, has driven higher prices for heavy rare earth elements. The company noted that yttrium oxide prices in Europe have risen sharply amid supply shortages, increasing the value of Monte Muambe’s yttrium-rich mineralisation contained within its fluorspar deposit and enhancing the project’s long-term economic potential.
The technical progress has also generated increased interest from critical minerals traders across Europe, North America and Asia, excluding China, as well as from a prospective strategic partner in Japan. NeoTerra believes advances in gallium recovery and support from government-backed funding programmes could help overcome financing challenges associated with developing non-Chinese sources of critical minerals, strengthening the company’s position as it works towards formal strategic partnerships.
The company’s outlook remains constrained by weak financial fundamentals, including the absence of revenue, ongoing losses, sustained cash outflows and higher leverage during 2025. Technical indicators also remain negative, with the shares trading below key moving averages and bearish momentum signals persisting. Valuation offers limited support as the company remains loss-making and does not currently pay a dividend.
More about NeoTerra Group Plc
NeoTerra Group Plc is a London Main Market-listed exploration and development company focused on critical raw materials across Africa. Its strategy centres on advancing assets with near-term commercial potential, targeting minerals such as fluorspar, heavy rare earths and gallium that are increasingly important to global industrial and technology supply chains.
The company’s flagship Monte Muambe project is being developed as a potential source of premium acid-grade fluorspar together with heavy rare earth and gallium by-products. NeoTerra aims to capitalise on rising demand for critical minerals sourced outside China by combining technical development with government-supported initiatives to accelerate project advancement.
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