NeoTerra Group (LSE:TERA) has applied for a US$5 million grant under the U.S.-Africa Strategic Investment Program to evaluate a potential expansion of its Monte Muambe fluorspar project in Mozambique.
The company currently plans to develop a fluorspar operation with annual production of 50,000 tonnes. NeoTerra said an expansion of the project’s mineral resource could support a larger operation and extend its potential mine life.
Programme Targets Expansion of Fluorspar Resource
The proposed programme would include additional drilling aimed at increasing the Monte Muambe fluorspar resource from 716,000 tonnes of contained CaF2 to approximately 4 million tonnes.
Funding would also be used for a regional study of the fluorspar and fluorine markets and a conceptual feasibility study examining the potential development of a hydrofluoric acid plant in Mozambique.
The company said the proposed work is consistent with Mozambique’s objective of increasing domestic value addition from its mineral resources.
NeoTerra Continues Work on Monte Muambe
NeoTerra said the grant application follows existing U.S. government support for the project. The company is also pursuing additional partnerships relating to the rare earths and gallium components of Monte Muambe.
The proposed programme remains dependent on NeoTerra securing the US$5 million grant, while any subsequent expansion or development would depend on the outcome of the planned studies and further project work.
About NeoTerra Group
NeoTerra Group is a London Main Market-listed exploration and development company focused on critical raw materials projects in Africa.
Its Monte Muambe project in northwest Mozambique contains rare earths, fluorspar and gallium and is covered by a 25-year mining licence. The company’s portfolio also includes the Sesana copper-silver project in Botswana.
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