NeoTerra Group (LSE:TERA) has applied for a US$5 million grant under the U.S.-Africa Strategic Investment Program to assess expanding its Monte Muambe fluorspar project in Mozambique beyond the initial development plan.
The African critical minerals exploration and development company is currently progressing a 50,000 tonnes-per-annum fluorspar mining operation at Monte Muambe, with a scoping study now being finalised and environmental permitting under way.
The grant application would fund additional resource drilling to lift the fluorspar mineral resource from 716,000 tonnes to 4 million tonnes of contained calcium fluoride, a regional fluorspar and fluorine market study, and a conceptual feasibility study into a hydrofluoric acid production facility in Mozambique.
NeoTerra says the application does not alter the timeline of the ongoing 50,000 tpa scoping study.
The Program, run by the U.S. Department of State's Bureau of African Affairs, has roughly $500 million in total funding with individual awards of $5 million to $50 million, aimed at critical mineral supply chains in sub-Saharan Africa.
It builds on NeoTerra's existing relationship with Washington at Monte Muambe, where the company already holds a $1.875 million grant from the U.S. Trade and Development Agency to fund a prefeasibility study on the project's rare earths component, currently being led by Valentine Enterprises following its selection last month.
Monte Muambe also hosts a resource of 13.6 million tonnes at 2.42% total rare earth oxides and 11.73 million tonnes at 54.7 g/t gallium oxide, under a 25-year mining licence.
"By increasing the Monte Muambe MRE and assessing additional sources of fluorspar feedstock across the region, we want to determine whether sufficient scale exists to support downstream hydrofluoric acid production in Mozambique," said chief executive Cédric Simonet.
NeoTerra continues to pursue separate strategic partnerships for the project's gallium component, targeting US-aligned parties seeking secure critical raw material supply.