NeoTerra Raises Ownership in Mozambique's Monte Muambe Critical Minerals Project to 70%

What happened London-listed exploration company NeoTerra Group Plc, formerly known as Altona Rare Earths, has completed Phase 3 of its farm-out investment agreement for the Monte Muambe critical minerals project located in central Mozambique, according to reports by Mining Weekly Africa and Club of Mozambique. Mining Weekly Africa reported that the company met the minimum expenditure requirement for this phase, triggering an increase in its equity interest in operating subsidiary Monte Muambe Mining Limitada from 51% to 70%. NeoTerra has initiated the administrative and contractual formalities required to transfer the additional shares. According to Club of Mozambique, the underlying farm-out agreement was originally entered into in June 2021. During the completion of Phase 3, the project secured a 25-year mining licence covering the extraction of fluorite and rare earths. The publication also noted that NeoTerra previously obtained a $1.875 million (€1.6 million) grant from the United States Trade and Development Agency (USTDA) to back development on the rare earths stream, a grant also cited by Mining Weekly Africa as totaling $1.8 million from the US government. Club of Mozambique further reported that Monte Muambe, situated at an extinct volcano, hosts estimated resources of 13.6 million tonnes of rare earth ore, 3.48 million tonnes of fluorite, and 11.73 million tonnes of ore containing gallium oxide at an average grade of 54.7 grams per tonne. Recent project advancements detailed by the outlet include an 85% gallium recovery rate in laboratory testing in August, the identification of the heavy rare earth host mineral xenotime in June, and a September application for funding under the US Africa Strategic Investment Program (USASIP) to evaluate a conceptual hydrofluoric acid production plant and expand fluorite drilling. Why it matters Nexus Energy analysis indicates that NeoTerra’s consolidation of a 70% controlling interest underscores growing corporate momentum behind multi-commodity critical mineral targets in Southern Africa. By packaging rare earth elements alongside industrial fluorspar and gallium within a single concession, the asset appears structured to diversify development pathways rather than relying solely on traditional light rare earths. The backing of US institutions, including the USTDA grant and the potential USASIP funding mechanism, suggests strategic Western interest in securing non-concentrated supply chains for technology-critical minerals. If the conceptual assessments regarding local hydrofluoric acid synthesis progress, the venture could theoretically extend Mozambique’s footprint into downstream chemical processing for semiconductors, batteries, and industrial cooling materials, moving past raw ore exports. What to watch Nexus Energy analysis suggests that key monitoring points will center on the formal completion of the share transfer procedures in Monte Muambe Mining Limitada and the outcome of the USASIP grant application. Progress on this front will dictate the timing and scope of expanded resource drilling for fluorite and the execution of regional market studies. Stakeholders will also likely track whether NeoTerra can advance its laboratory metallurgical successes—notably the reported 85% gallium recovery and xenotime separation—into commercial-scale flowsheets and feasibility evaluations across its 25-year mining concession. Sources Club of Mozambique Mining Weekly Africa