LONDON (ShareCast) - African Consolidated Resources (ACR) has received approval from Zambian authorities as the sole existing exploration licence of the Nkombwa mine, the company said Tuesday.
The Zambian Ministry of Mines and Mineral Development has confirmed the validity of the large scale prospecting licence which is held by the company's subsidiary Fisherman Mining.
The licence encompasses the Nkombwa Hills rare earth project which is being advanced in a venture with Galileo Resources.
Galileo will finance ACR's farm-in partner which will inject $1.35m to define an indicated rare earth element resource.
ACR Chairman, Roy Tucker, said: "We are delighted with this news from the ministry in Zambia which removes any uncertainty as to the validity of our Nkombwa licence.
"With Galileo's formal confirmation that it has finalised its legal due diligence on the Nkombwa Hills Rare Earth Project, we are now well placed to advance this valuable asset up the development curve.
"Underpinning this, Galileo has reiterated its commitment to developing the project, which has to date reported enriched outcrop samples of up to 23.6% total REE (Madrid: REE.MC - news) oxide over a strike length of at least 350m, stating that it intends to advance the project to resource definition stage in as short timeframe as practicable."