Mkango Resources Ltd. (AIM:MKA) (TSX-V:MKA) (the
"
Company" or "
Mkango") announces
that following the exercise of warrants over 2,156,060 common
shares without par value in the share capital of the Company (“New
Shares”), it has received an aggregate cash consideration of
£137,650 and is issuing the equivalent number of New Shares. The
warrants being exercised comprise 2,006,060 warrants at 6.6 pence
each and 150,000 warrants at 3.5 pence each.
The New Shares will rank pari passu with the
existing shares and application has been made for the New Shares to
be admitted to trading on AIM (“Admission”). It is expected that
Admission will become effective and dealings in the New Shares will
commence at 8:00a.m. on or around 16 January 2018. The New Shares
will also trade on the Toronto Venture Exchange.
In accordance with the Disclosure Guidance and
Transparency Rules (DTR 5.6.1R) the Company hereby notifies the
market that immediately following Admission, its issued share
capital will consist of 105,035,284 shares. The Company does
not hold any shares in treasury. Shareholders may use these
figures as the denominator for the calculations by which they will
determine if they are required to notify their interest in, or a
change to their interest in, the Company under the FCA's Disclosure
and Transparency Rules.
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, 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, a wholly owned subsidiary of Noble Group
Limited, whereby, subject to regulatory approval, Talaxis will
fully fund a 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 transaction with Talaxis is subject to
subject to shareholder approval, such vote to exclude the shares in
Mkango held by Talaxis, with the shareholder meeting scheduled for
January 18, 2018.
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 contains forward-looking
statements (within the meaning of that term under applicable
securities laws) with respect to Mkango, its business and the
Project. Generally, forward looking statements can be identified by
the use of words such as “plans”, “expects” or “is expected”,
“scheduled”, “estimates” “intends”, “anticipates”, “believes”, or
variations of such words and phrases, or statements that certain
actions, events or results “can”, “may”, “could”, “would”,
“should”, “might” or “will”, occur or be achieved, or the negative
connotations thereof. Forward looking statements in this news
release include statements with respect to the global market for
products using the rare earth metals the Company is exploring for,
completion of the feasibility study and of the transactions
contemplated in the Agreement, as well as the use of proceeds from
the investments into the Company by Talaxis and the timing of such
expenditures. 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, market demand for the
metals and associated downstream products for which Mkango is
exploring, researching and developing, the positive results of a
feasibility study on the Project, delays in obtaining financing or
governmental or stock exchange approvals. The forward-looking
statements contained in this news release are made as of the date
of this news 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.
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For
further information on Mkango, please contact: |
Mkango Resources Limited |
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William
Dawes Chief Executive Officer will@mkango.ca UK: +44
207 3722 744Canada: +1 403 444
5979www.mkango.ca@MkangoResources |
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Alexander Lemon
Presidentalex@mkango.ca |
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BlytheweighFinancial Public RelationsTim Blythe,
Camilla Horsfall, Nick Elwes UK: +44 207 138 3204 |
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SP Angel
Corporate Finance LLPNominated Adviser and BrokerJeff
Keating, Caroline RoweUK: +44 20 3470 0470 |
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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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