How Chilwa Minerals’ $4.1M Raise Fuels Rare Earths and Mineral Sands Breakthroughs

Exploration Momentum Builds

Chilwa Minerals Limited (ASX – CHW) has reported a productive September quarter, reinforcing its position in Malawi’s critical minerals sector. The company’s diamond drilling at the Mposa rare earth element (REE) target confirmed elevated total rare earth oxide (TREO) values reaching up to 1,039 parts per million in clays and saprolite layers down to 80 metres. This promising assay result validates the geophysical and geochemical anomalies identified earlier and sets a strong foundation for further exploration.

Meanwhile, sonic drilling at the Mpyupyu heavy mineral sands (HMS) deposit has progressed steadily, with 2,668 metres drilled across 354 holes. The Mpyupyu Dune and Flats deposits collectively hold significant indicated and inferred resources, with grades averaging around 4.5% to 6.2% total heavy minerals. These efforts aim to upgrade resource confidence ahead of a planned Mineral Resource Estimate update.

Robust Metallurgical Advances

Complementing the drilling success, metallurgical studies have delivered encouraging results. Chilwa achieved a sulfate-grade ilmenite concentrate with 51% titanium dioxide (TiO₂) and a 95% recovery rate from heavy mineral concentrate. Additionally, zircon recovery reached 47% producing a 66% zirconium oxide plus hafnium oxide product, garnet concentrate graded 57% almandine with 72% recovery, and monazite concentrate yielded 14.2% monazite at 88% recovery. These outcomes support a robust mineral sands processing flowsheet using standard industry technologies, underpinning the economic viability of the project.

Strategic Funding and Logistics

To accelerate its exploration and development programs, Chilwa successfully completed a two-tranche private placement raising A$4.1 million at $1.05 per share. The funds will support ongoing sonic drilling, mineralogy and metallurgy studies, environmental impact assessments, and diamond drilling on REE targets. The company’s cash position stood at A$1.85 million at quarter end, with a subsequent $8.1 million placement announced post-quarter to further bolster its financial runway.

Recognising the critical importance of export logistics, Chilwa initiated strategic discussions with Mota Engil regarding dry port capacity at Lilongwe, Malawi’s capital. This partnership aims to secure scalable, cost-effective infrastructure to facilitate mineral exports via the existing rail corridor to the Nacala port in Mozambique, a key factor in optimising project economics.

Licensing and Corporate Developments

Chilwa renewed its exploration licenses covering 878.7 square kilometres around Lake Chilwa, maintaining 100% ownership through its subsidiaries, including the newly formed Phalombe Resources focused on rare earth exploration. The company also welcomed José Martins as a new non-executive director, enhancing its governance and strategic oversight.

Looking ahead, Chilwa plans to complete a scoping study in the first quarter of 2026, integrating updated resource estimates and metallurgical data. The company anticipates further assay results from diamond drilling programs and continued resource upgrades in the coming months, maintaining momentum in its critical minerals project development.