Mkango Resources Ltd. (AIM:MKA) (TSX-V:MKA) (the
"
Company" or "
Mkango") announces
that following the exercise of warrants over 1,716,650 common
shares without par value in the share capital of the Company (“New
Shares”), it has received an aggregate consideration of £116,224.
The warrants being exercised comprise 1,566,650 warrants at 6.6
pence each and 150,000 warrants at C$0.15 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 30 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 106,751,934 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
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 the 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
Lancaster). 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, 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.
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
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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