NeoTerra Raises Stake in Mozambique Critical Minerals Project to 70%

NeoTerra Group has secured the right to increase its ownership of the Monte Muambe mining project in Mozambique from 51% to 70%, after meeting the spending requirements for the third phase of its farm-out agreement.

The company announced the milestone on October 26, 2026. Monte Muambe Mining Limitada, which holds the project’s mining licence, is the entity in which NeoTerra’s interest will increase. The contractual and administrative steps to transfer the corresponding shares have begun, but the transfer is not yet complete. NeoTerra said it would issue another announcement once the formalities are finalised.

Located in Tete Province in north-western Mozambique, Monte Muambe contains rare earths, fluorspar and gallium mineralisation. The project operates under a 25-year mining concession valid until 2049.

Rare Earths, Fluorspar and Gallium Drive Development Plans

NeoTerra’s published mineral resource estimate for the rare earths deposit stands at 13.6 million tonnes grading 2.42% total rare earth oxides (TREO). The resource includes neodymium and praseodymium, which are used in permanent magnets for electric motors and other industrial applications.

The project also has a fluorspar resource of 3.48 million tonnes grading 20.6% calcium fluoride. NeoTerra is pursuing plans for an initial operation producing 50,000 tonnes of acid-grade fluorspar concentrate a year. The company is targeting a final investment decision by the end of 2026, with construction potentially starting in 2027. These dates remain targets rather than confirmed project milestones.

Gallium adds a third mineral resource to the project. Monte Muambe has a published estimate of 11.73 million tonnes grading 54.7 grams per tonne of gallium oxide. The metal is used in semiconductors and specialised electronics, but further technical work is needed to establish a viable recovery process and determine its commercial potential.

US Grant Supports Rare Earths Feasibility Work

NeoTerra has received a US$1.875 million grant from the United States Trade and Development Agency to support the rare earths component of Monte Muambe’s prefeasibility study. The funding covers metallurgical testing and process engineering to help determine how the ore can be processed and to update the project’s technical and economic assessment.

The prefeasibility study is also expected to include an updated mineral resource estimate and an Ore Reserve statement. NeoTerra’s project page notes that only two of the 11 identified targets have been extensively drilled, leaving scope for further resource work as exploration progresses.