Mkango Resources Ltd. (AIM:MKA) (TSX-V:MKA) (the
"
Company" or "
Mkango") is pleased
to announce that Mkango and Talaxis Ltd (“Talaxis”), a subsidiary
of Noble Group Ltd, have signed the definitive agreements (the
“Agreements”) in relation to the transaction announced on November
16, 2017, whereby Talaxis will acquire up to a 75% interest in
Lancaster Exploration Ltd (“Lancaster”), the holder of the licence
for the Songwe Hill Rare Earths Project (“Songwe”) in Malawi, and
up to 49% of Maginito Ltd (“Maginito”):
Songwe Joint Venture
- In January 2018, Talaxis invested £5 million (C$8.8 million) in
return for a 20% interest in Lancaster.
- Mkango will shortly commence a major drilling programme at
Songwe and is targeting the completion of an updated Mineral
Resource Estimate by the end of 2018.
- On Mkango publishing an NI 43-101 technical report in relation
to the updated Mineral Resource Estimate, Talaxis will invest an
additional £7 million (C$12.1 million) to fund the completion of a
feasibility study for a further 29% interest, increasing its total
interest in Lancaster to 49%.
- On Mkango completing a feasibility study for Songwe, Talaxis
will have the option to acquire a further 26% interest in
Lancaster, increasing its aggregate interest to 75%, by arranging
funding for 100% of remaining project development costs, including
funding the equity component thereof. If Talaxis exercises its
option, Mkango will retain a 25% interest, free carried to
production.
- Mkango is targeting completion of a feasibility study for
Songwe by the end of 2019.
Maginito Investment
- In January 2018, Talaxis invested £1 million (C$1.7 million) in
return for a 24.5% interest in Maginito.
- Maginito is focused on downstream opportunities relating to the
rare earths supply chain, in particular neodymium alloy powders,
magnet and other technologies geared to accelerating growth in the
electric vehicle market. 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.
- On successful completion of the second phase of the research
and development programme with Metalysis, Talaxis will invest an
additional £1 million (C$1.7 million) into Maginito for a further
24.5% interest, increasing its total interest in Maginito to
49%.
Talaxis and Mkango will be each other’s
preferred partner for all rare earths projects worldwide and for
all activities in Malawi.
William Dawes, Chief Executive Officer
of Mkango, said: "Following the signing of the definitive
agreements, Mkango has a clearly defined pathway to production
against the backdrop of a strong outlook for rare earths geared to
the electric vehicle market. We look forward to working with
Talaxis to develop Songwe as a long term, sustainable producer of
rare earths and complementary downstream technologies through
Maginito. The next major milestone is an updated resource for
Songwe, which triggers the next £7 million investment from
Talaxis.” Daniel Mamadou, Executive Director of Talaxis
said: “As the market for permanent magnet technology
continues to grow rapidly, access to reliable sources of neodymium
becomes key. As such, we are pleased to sign the definitive
agreements with Mkango. Our focus is to ensure that our clients can
benefit from a supply chain specialized in technology metals that
is reliable and resilient to external shocks.”
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, the initial phases
of which include a major drilling programme.
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.
About Talaxis Limited
Talaxis Limited is a company owned by Noble
Group that is involved in the investment and trading of metals and
raw materials which are critical to green technology supply chains,
including cobalt, lithium, and rare earths. Talaxis is also
involved in the research and development of industrial applications
for energy solutions providers and permanent magnets manufacturers.
With the support of its parent company, Talaxis has access to
physical commodities logistics and to a global marketing
network.
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.
Mkango Resources (TSXV:MKA)
Historical Stock Chart
From Mar 2024 to Apr 2024
Mkango Resources (TSXV:MKA)
Historical Stock Chart
From Apr 2023 to Apr 2024