Mkango Resources Ltd. (AIM:MKA) (TSXV:MKA) (the
"
Company" or "
Mkango") is pleased
to announce that a major diamond drilling programme has commenced
at the Songwe Hill Rare Earths Project (“Songwe”) in Malawi. The
drilling programme is a key component of the Feasibility Study for
Songwe, which is being fully funded by Talaxis Limited (“Talaxis”),
a subsidiary of Noble Group Ltd.
The drilling programme is for a minimum of 5,000
metres and will be focused on infill, step-out and geotechnical
drilling. Over 50 drill pads have been constructed along with new
access roads and enlarged camp infrastructure.
Mkango completed two successful drilling
programmes at Songwe in 2011 and 2012, totaling approximately 6,850
metres and culminating in a maiden Mineral Resource Estimate.
Mkango is targeting 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 a further £7 million to fund completion of the
Feasibility Study for Songwe.
In coming weeks, Mkango will be hosting investor
and analyst site visits to Songwe and the Thambani
Uranium-Tantalum-Niobium Project, also in Malawi.
William Dawes, CEO, commented:
“We are delighted to announce the commencement of the
drilling programme at Songwe. This is a culmination of extensive
preparatory work completed over recent months and we are excited to
kick off what will be the largest drill programme to date at
Songwe. Mkango is fully funded to completion of a feasibility study
with a clearly defined pathway to production. We look forward to
keeping the market updated as we progress through the drilling
programme and other major milestones.”
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 a Feasibility Study is currently underway, the initial phases
of which include a major drilling programme.
Under the terms of an agreement with Talaxis,
Talaxis will fully fund the Feasibility Study for Songwe by
investing £12 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 including funding the equity component thereof.
If Talaxis exercises its option, Mkango will retain a 25% interest,
free carried to production. To-date, Talaxis has invested £5
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, Talaxis will
acquire a 49% interest in Maginito Ltd, a new subsidiary of Mkango
focused on neodymium alloy powders, magnets 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 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
Chief Executive Officer
will@mkango.ca
UK: +44 207 3722 744Canada: +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 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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