Amigo Resources shares gain on new Tanzanian rare earths joint venture

(Sharecast News) - Shares in Amigo Resources rose on Tuesday after the gold and rare earth element (REE) miner unveiled a new strategic joint venture in south-west Tanzania, giving it a stake in a REE licence package in one of East Africa's most prospective REE provinces.

The AIM-listed group said it has agreed a deal with AK Corporation and Anil Group to develop a portfolio of REE licences in the Songwe region, with Amigo taking a 51% controlling stake and acting as operator.

The project covers three prospecting licences spanning 17.73 square kilometres in a region considered highly prospective for critical minerals used in technologies such as electric vehicles and wind turbines.

The agreement requires no upfront cash payment from Amigo, with the company instead funding exploration as the project progresses. Future payments will depend on technical success and development milestones.

Historical drilling at one licence has already indicated the presence of rare earth oxides, suggesting early-stage potential, although the project remains at an exploration phase.

Management said the joint venture aligns with its strategy to build a portfolio of critical mineral assets in Africa and positions the company to benefit from rising global demand for rare earths.

"This Joint Venture establishes a structured, well-aligned partnership to unlock the value of a highly prospective REE licence package in Tanzania," the firm said in a statement.

"The combination of strong geological fundamentals, district-scale exploration potential, and a commercial structure that imposes no upfront burden on Amigo's Group positions the project as a compelling early-stage critical minerals opportunity with significant upside."

The stock was up 6.3% at 2.92p by 0914 BST.

Amigo Resources