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Noble unit to acquire 49% stake in rare earths project for £14m

Noble Group Ltd’s stock sell-off deepened as the trader pressed on with an effort to restructure its debt burden amid concerns it will default and, separately, transferred a block of shares to employees who are leaving the company as it disposes of North American energy assets.

NOBLE Group on Monday announced that its green tech subsidiary Talaxis is acquiring a 49 per cent stake in a rare earths projects undertaken by Toronto-listed Mkango Resources for £14 million (S$25 million).

Talaxis has proposed to invest £12 million in Lancaster Exploration, a wholly owned subsidiary of Mkango for the development of the Songwe Hill rare earths project in Malawi.

Talaxis has proposed to invest an additional £2 million in a new company to hold Mkango's 85 per cent interest in a joint venture between Mkango and Metalysis Limited for the development of new rare earth alloy powders and magnet technologies and production facilities.

Daniel Mamadou, executive director of Talaxis said: "The global push to decarbonise the economy is creating pressure on the supply of critical elements to the green tech sector. Environmental regulation and the policy changes are driving the price of technology metals. Supported by our access to global logistics capabilities, an extensive marketing network and a team of experienced professionals, Talaxis is pleased to enter into this agreement, which further strengthens our supply chain specialised in tech metal products."

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