SONGWE HILL MINING PROJECT BOOSTED WITH USD4.6-MILLION
• PROJECTS AND EXPLORATION
Image by Natanaelginting on Freepik
" Our 2025 programme is advancing along three parallel tracks: infill and extension drilling of previously delineated deposits, progressing pre-resource targets toward maiden resource status and drill testing new targets. We are pleased with the progress at the Gbongogo South and Koban North deposits, which have shown a high conversion rate from Inferred to Indicated Resources while continuing to grow. This success validates our strategy of systematically drill testing the most prospective zones to confirm higher-grade potential and define starter resources before launching broader step-out campaigns.”
Source: Supplied by Montage Gold
Indicated Resources increased by 207koz to 273koz at a grade of 1.16g / t Au, with a further 74koz at a grade of 1.10g / t Au of Inferred Resources.
SONGWE HILL MINING PROJECT BOOSTED WITH USD4.6-MILLION
Location: Malawi Phase: Development Resource: Rare earth deposits
Songwe Hill Rare Earth Mining Project scores funding to the value of USD4.6-million from the United States International Development Finance Corporation( DFC).
Mkango Resources announced on 29 September 2025 that its indirect wholly owned subsidiary, Lancaster Exploration Limited( to be renamed Mkango Rare Earths Limited) has entered into a project development funding agreement with the United States International Development Finance Corporation, the USA government’ s development finance institution, to secure USD4.6-million in reimbursable funding as part of the DFC’ s Project Development strategy for the Songwe Hill rare earth project in Malawi.
Receipt of the funding is subject to satisfaction of certain conditions set out in the agreement. The funds are expected to support project development activities in the form of Front-End Engineering Design( FEED) and value engineering studies.
The funds are expected to support project development activities in the form of Front-End Engineering Design( FEED) and value engineering studies.
The funding is to be equally matched by MKAR contributions over the next 18 months and will need to be repaid to the DFC only if, within ten years of the signing of the agreement, MKAR obtains financing sufficient to initiate construction, operations or other material implementation of the project. Furthermore, for a period unto five years after the termination of the agreement, the DFC will have the right( but not the obligation) to directly provide and / or arrange for financing or investment for the project on commercial terms substantially comparable to or better than the terms of other financing options available to finance the project when considered in conjunction with the other benefits brought by DFC to the project in connection with the project development.
The DFC’ s project development product is part of the US Better Utilisation of Investments Leading to Development( BUILD) Act and provides support for high-impact companies to overcome operational, financial and developmental challenges, thereby enhancing project viability and readiness for future investment. The funding is tailored for projects with the potential to receive later DFC financing.
Further funding for MKAR or the project is at the discretion of the DFC and will be contingent on the successful completion of associated FEED and value engineering studies.
Alexander Lemon, president and founding director of Mkango said,“ I am delighted to announce the participation of the DFC to assist MKAR to fast track the development of the Songwe Hill Rare Earth Mining Project in Malawi. The DFC recognises the game-changing development potential of the Project and this initial Project Development Funding provides a path for MKAR to secure the longer-term development funding needed to develop Songwe Hill and position the Mkango group as one of the few key players in the global rare earth supply chain.”
Source: supplied by Mkango Resources Limited
The DFC’ s project development product is part of the USA’ s Better Utilisation of Investments Leading to Development( BUILD) Act and provides support for high-impact companies to overcome operational, financial and developmental challenges.
14 • African Mining • January 2026 www. africanmining. co. za