Mustang Resources Ltd. said March 1 that it secured a key mining concession at its Montepuez ruby project in Mozambique.
Mining concession 8955C is for the area previously covered by prospecting and exploration license 8245L, which forms an important part of Montepuez. It is valid for an initial 25-year term.
The company noted that most of the ruby sampling and pitting in the past seven months was conducted on the license area.
Mustang will now complete an environmental impact assessment and associated enjoyment of land, or DUAT, within three years from the grant.
Mine development, meanwhile, must begin within two years after the grant of the environmental license or the DUAT is granted, provided that production commences within four years after the award of the concession.
The company in January announced plans to raise A$24 million via a convertible note facility and rights issue, with a portion of the proceeds to go toward the continued development at Montepuez.
