Mkango Resources Ltd. (AIM:MKA) (TSX-V:MKA) (the
"
Company" or "
Mkango") is pleased
to announce that it has been granted an Exclusive Prospecting
Licence (EPL0475/17) (the “Chimimbe Hill” licence) covering the
Chimimbe Hill nickel – cobalt deposit and other targets in Mchinji
district, central Malawi.
Highlights
- The Chimimbe Hill licence covers an area of 98.48 sq km and
features laterite and saprolite hosted nickel, cobalt, chrome and
other mineralisation
- Significant historical exploration has been completed,
including pitting, drilling and metallurgical test work
- Magnetic anomalies in the licence area indicate exploration
potential for additional nickel – cobalt mineralisation
Mkango will re-evaluate the Chimimbe Hill
deposit in the context of geophysical data produced by the recent
World Bank airborne geophysical survey of Malawi, recent
infrastructure developments in the region, potential synergies with
the Company’s Songwe Hill rare earths project and Thambani
uranium-tantalum-niobium project, both in Malawi, options relating
to sulphuric acid and / or alternative reagents supply, potential
by-products, as well as opportunities to produce nickel and cobalt
products for the battery electric vehicle market.
The evaluation of the licence will be funded
from the Company’s existing working capital, which totaled
US$869,479 as at September 30, 2017. Subsequently, Mkango announced
the receipt of £241,995 (US$320,135) from the exercise of
warrants.
Alexander Lemon, President of Mkango,
said: "We are delighted to have
been granted the Chimimbe Hill nickel – cobalt exploration licence,
which is consistent with our strategy to target raw materials and
technologies geared to accelerating growth in the electric vehicle
market. Both nickel and cobalt are increasingly in demand as
cathode materials for batteries in electric vehicles. This new
licence, when combined with the Songwe Hill rare earths project and
our collaboration with Metalysis on neodymium alloys for permanent
magnets, positions Mkango as a potential future supplier of the
critical raw materials used in both batteries and permanent magnet
motors in electric vehicles.
We are commencing a full historical data review
for Chimimbe Hill, including an evaluation of exploration potential
from recent geophysics, and look forward to updating shareholders
on this new licence and the recently announced transaction with
Talaxis in due course.”
Chimimbe Hill Exploration
Licence
The Chimimbe Hill licence has been granted for
the exploration of nickel, cobalt, graphite, chrome and other
minerals and covers an area of 98.48 sq km in the Mchinji district
of Central Malawi. The licence is initially awarded for a 3-year
term, after which it can be renewed twice for further two-year
periods with a 50% reduction in the licence size required with each
renewal. The Chimimbe Hill area was selected following
comprehensive in-house analysis of available datasets. These
included geological maps, historic mineral occurrences, remote
sensing data and satellite imagery. A nickel anomaly was first
identified by the Malawian Geological Survey in 1968.
Chimimbe Hill is a prominent northerly trending
elongate feature, measuring 1200 metres by 500 metres and rising
140 metres above the surrounding plain. Located in Mchiniji
district, approximately 80km west of Lilongwe, Malawi’s capital
city, Chimimbe Hill is underlain by a deformed and metamorphosed
ultramafic body associated with high grade metamorphic rocks of the
Mozambique mobile belt.
Scientific and technical information contained
in this release has been approved and verified by Dr. Scott Swinden
of Swinden Geoscience Consultants Ltd, who is a "Qualified Person"
in accordance with National Instrument 43-101 -Standards of
Disclosure for Mineral Projects.
Market Abuse Regulation (MAR)
Disclosure
Certain information contained in this
announcement would have been deemed inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 until the
release of this announcement.
About Mkango Resources
Limited
Mkango's primary business is the exploration for
rare earth elements and associated minerals in the Republic of
Malawi, a country whose hospitable people have earned it a
reputation as “the warm heart of Africa”. The Company holds three
exclusive prospecting licenses in Malawi, the Phalombe licence, the
Thambani licence and the Chimimbe Hill licence.
The main exploration target in the Phalombe
licence is the Songwe Hill rare earths’ deposit (“Songwe”), which
features carbonatite hosted rare earth mineralisation and was
subject to previous exploration in the late 1980s. Mkango completed
an updated Pre-feasibility Study for the project in November
2015.
In November 2017, Mkango entered into an
agreement with Talaxis Limited (“Talaxis”), a wholly owned
subsidiary of Noble Group Limited, whereby, subject to regulatory
approval, Talaxis will fully fund a bankable feasibility study for
Songwe by investing £12 million (C$20 million) for a 49% interest
in the project. Talaxis will also have the option to acquire a
further 26% interest in the project by arranging funding for
project development.
In addition, by investing a further £2 million
(C$3.3 million), Talaxis may acquire a 49% interest in a new
venture to be established by Mkango focused on neodymium alloy
powders, magnet and other technologies. This includes the
collaboration with Metalysis Ltd announced in September 2017, which
is focused on advanced alloys using neodymium or praseodymium with
other elements for permanent magnet manufacturing.
Permanent magnets are critical materials for
most electric vehicles, direct drive wind turbines and many other
high growth applications. Neodymium is a key rare earth component
at Songwe.
Talaxis and Mkango have also agreed to cooperate
as preferred partners on rare earths projects worldwide and on
other projects in Malawi.
The main exploration targets of Mkango’s
remaining two licences are, in the Thambani licence, uranium,
niobium, tantalum and zircon and, in the Chimimbe Hill licence,
nickel and cobalt.
For more information, please visit
www.mkango.ca.
Cautionary Note Regarding
Forward-Looking Statements
This news release may contain forward-looking
statements. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the
plans, intentions or expectations upon which they are based will
occur. By their nature, forward-looking statements involve numerous
assumptions, known and unknown risks and uncertainties, both
general and specific, that contribute to the possibility that the
predictions, forecasts, projections and other forward-looking
statements will not occur, which may cause actual performance and
results in future periods to differ materially from any estimates
or projections of future performance or results expressed or
implied by such forward-looking statements. Such factors and risks
include, without limiting the foregoing, delays in obtaining
financing or governmental or stock exchange approvals. The
forward-looking statements contained in this press release are made
as of the date of this press release. Except as required by law,
the Company disclaims any intention and assumes no obligation to
update or revise any forward-looking statements, whether as a
result of new information, future events or otherwise, except as
required by applicable law. Additionally, the Company undertakes no
obligation to comment on the expectations of, or statements made
by, third parties in respect of the matters discussed above.
For further information on Mkango,
please contact:Mkango Resources
LimitedWilliam DawesChief Executive
Officerwill@mkango.caCanada: +1 403 444
5979www.mkango.ca@MkangoResources
Alexander LemonPresidentalex@mkango.ca
BlytheweighFinancial Public
RelationsTim Blythe, Camilla Horsfall, Nick ElwesUK: +44 207 138
3204 SP Angel Corporate Finance
LLPNominated Adviser and BrokerJeff Keating ,
Caroline RoweUK: +44 20 3470 0470
The TSX Venture Exchange has neither
approved nor disapproved the contents of this press release.
Neither the TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any equity or other
securities of the Company in the United States. The securities of
the Company will not be registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”) and
may not be offered or sold within the United States to, or for the
account or benefit of, U.S. persons except in certain transactions
exempt from the registration requirements of the U.S. Securities
Act.
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