NeoTerra Group (LSE:TERA) announced it has now completed Phase 3 of its Farm-Out Agreement at the Monte Muambe project in Mozambique, triggering an increase in its ownership of the licence holder from 51% to 70%.
The London-listed critical minerals explorer and developer met the minimum expenditure requirement for the phase, set under the Farm-Out Agreement dated 23 June 2021, with Monte Muambe Mining Limitada holding the mining licence underlying the project.
NeoTerra said the contractual and administrative steps needed to transfer the corresponding shares have begun, with a further announcement to follow once they are complete.
Monte Muambe is NeoTerra's flagship multi-commodity project in northwest Mozambique, targeting fluorspar, heavy rare earths and gallium from a single integrated development, and operates under a 25-year mining licence.
During Phase 3, the company secured that 25-year mining licence covering rare earths and fluorspar, won a US$1.875 million grant from the US Trade and Development Agency to fund a prefeasibility study, and advanced the fluorspar opportunity through exploration, resource drilling and technical studies.
"The completion of Phase 3, which triggers the increase of our interest in MMM to 70%, represents an important milestone in advancing Monte Muambe towards development and strengthening the Company's ownership of this increasingly strategic asset," said Cédric Simonet, chief executive of NeoTerra.
Read more about NeoTerra
- 28/09/26NeoTerra seeks US grant to scale up Monte Muambe fluorspar
- 16/07/26NeoTerra rare earths update lifts Monte Muambe revenue potential 40%
- 07/07/26NeoTerra reports metallurgical breakthrough at Monte Muambe
Simonet pointed to the discovery of gallium and the identification of heavy rare earth element enrichment alongside the fluorspar mineralisation as further achievements, describing them as "potentially substantial new value drivers for the project."
The milestone lands weeks after NeoTerra applied for a separate US$5 million grant under the U.S.-Africa Strategic Investment Program, aimed at expanding the fluorspar resource from 716,000 tonnes toward 4 million tonnes of contained calcium fluoride, alongside a market study and conceptual feasibility work on a Mozambique hydrofluoric acid production facility.