Mkango Resources Ltd. (AIM:MKA) (TSX-V:MKA) (the
"
Company" or "
Mkango") is pleased
to provide a corporate update.
Songwe Hill Rare Earths
Deposit
Following receipt of the £6 million investment
by Talaxis Limited (“Talaxis”) in January 2018, the initial phases
of the feasibility study for Songwe have commenced.
Preparation is well advanced for the largest
diamond drilling programme to date at Songwe. Drilling is targeted
to commence within the next month, once all drill roads and pads
are completed.
- The programme is for a minimum of 5,000 metres and will be
focused on infill, step-out and geotechnical drilling, the latter
for the purposes of mine design.
- The drill plan is based on a refined geological model developed
in-house by Mkango’s technical team in consultation with The MSA
Group and Bara Consulting, who have been appointed resource and
mining consultants, respectively.
- Cartwright Drilling has been appointed as drilling contractor,
with a combined Canadian and Malawian drilling team to operate two
diamond drill rigs both running 24 hours.
- Over 50 drill pads are being constructed for the drill
programme, as well as an enlarged camp to accommodate the larger
team versus previous drill programmes.
- Mkango has run two successful drill programmes at Songwe in
2011 and 2012, culminating in a maiden Mineral Resource Estimate,
also previously working with Cartwright Drilling, the MSA Group and
Bara Consulting.
- Mkango is targeting completion of an updated Mineral Resource
Estimate by the end of 2018.
In terms of other aspects of the feasibility
study, metallurgical optimisation is underway at laboratories in
Australia and Canada. The work programme has been scaled up
following receipt of the Talaxis funding and is focused on
flotation, hydrometallurgy and acid regeneration.
The Environmental, Social and Health Impact
Assessment is underway and being completed in accordance with World
Bank Standards and Equator Principles.
Appointment of Alternative Resource
Capital
Mkango has appointed Alternative Resource
Capital as Joint Broker and corporate sponsored research provider,
effective May 2, 2018.
Alternative Resource Capital is a trading name
of Shard Capital Partners LLP (“ARC”), which is authorised and
regulated by the FCA. ARC is a London based broker with a
focus on small to mid-cap listed resource companies. Under the
terms of the agreement (“Agreement”), ARC will provide corporate
broking and research services to the Company, and provide general
market intelligence, feedback on the market’s view of the Company
and on market activity in the shares. The Agreement provides for a
monthly fee of £2,083 per month in connection with the provision of
research services and runs for an initial term of 12 months with a
two month notice of termination provision.
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
interests in three exclusive prospecting licenses in Malawi, the
Phalombe licence, the Thambani licence and the Chimimbe Hill
licence.
The main exploration target in the 80% held
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
and is currently commencing a Feasibility Study.
Under the terms of an agreement with Talaxis,
Talaxis will fully fund a feasibility study for Songwe by investing
£12 million (C$21 million) for a 49% interest in the project (via
Mkango subsidiary Lancaster Exploration Ltd). Talaxis will also
have the option to acquire a further 26% interest by arranging
funding for project development. If Talaxis exercises its option,
Mkango will retain a 25% interest, free carried to production. To
date, Talaxis has invested £5 million (C$8.8 million), which is
funding the initial phase of the Feasibility Study, for a 20%
interest in the project with Mkango holding 80%.
By investing a further £2 million (C$3.3
million), Talaxis will acquire a 49% interest in Maginito Ltd, a
new subsidiary of 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. To date, Talaxis has invested £1 million
(C$1.8 million) for a 24.5% interest in Maginito with Mkango
holding 75.5%.
The main exploration targets in Mkango’s
remaining two 100% held 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.
Market Abuse Regulation (MAR)
Disclosure
Certain information contained in this
announcement may have been deemed inside information for the
purposes of Article 7 of Regulation (EU) No 596/2014 until the
release of this announcement.
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.
For further information on Mkango,
please contact:
Mkango Resources Limited |
|
|
William
Dawes |
Alexander Lemon |
Chief Executive
Officer |
President |
will@mkango.ca |
alex@mkango.ca |
UK: +44 207 3722
744 |
|
Canada: +1 403 444
5979 |
|
www.mkango.ca |
|
@MkangoResources |
|
BlytheweighFinancial Public
RelationsTim Blythe, Camilla Horsfall, Nick ElwesUK: +44 207 138
3204
SP Angel Corporate Finance
LLPNominated Adviser and Joint BrokerJeff Keating,
Caroline RoweUK: +44 20 3470 0470
Alternative Resource
CapitalJoint BrokerAlex Wood, Rob CollinsUK: +44 20 7186
9004; +44 20 7186 9001
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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