Mkango Resources Ltd. (AIM / TSXV: MKA) (the
"
Company" or "
Mkango"), the rare
earths exploration and development company focused on Malawi, is
pleased to announce that following the publication of a NI 43-101
Technical Report (the “Technical Report”) for the Songwe Hill Rare
Earths Project (“Songwe”) resource update on March 21, 2019,
Talaxis Limited (“Talaxis”) has invested an additional £7 million
into Lancaster Exploration Limited (“Lancaster”), which is the
holder of the licence for Songwe. As a result of this investment,
Talaxis’ equity interest in Lancaster will increase from 20% to
49%, with Mkango holding the remaining 51%.
The investment by Talaxis will fund completion
of the Feasibility Study for Songwe, which is currently underway
and expected to be completed in 2020. The updated resource
described in the Technical Report will form the basis for the
Feasibility Study. Following completion of the Feasibility Study,
Talaxis has an option to acquire a further 26% interest in Songwe
by arranging financing for project development including funding
the equity component thereof.
William Dawes, Chief Executive of Mkango
stated: “Mkango is uniquely positioned in the rare earths
sector with an advanced stage rare earths project in a favourable
jurisdiction and a strong strategic partnership with Talaxis
providing the financial means and network of relationships
throughout Asia and elsewhere to deliver a successful project.”
Alexander Lemon, President of Mkango
stated: “This project will be transformational for Malawi,
empowering local communities and validating Malawi’s credentials as
one of Africa’s premier investment destinations. We are very
appreciative of the support we continue to receive from the
Government of Malawi and all stakeholders as we progress through
the Feasibility Study.”
Daniel Mamadou, Director of Talaxis and
co-Head of Technology Metals at Noble Group said: "Rare
earths play a core role in our portfolio of technology metals. High
performance electric motors and permanent magnet applications
drives the demand for neodymium and praseodymium, making these
elements key enablers of EV policies globally. The results of the
drill campaign at Songwe are encouraging and point towards the
potential of creating a world class asset. We are pleased to extend
our strategic partnership with Mkango and to increase our
investment in Songwe, which is one of the few advanced stage rare
earths projects currently. We look forward to collaborating with
Mkango to ensure this project is developed to its full
potential."
Further details on the scope and other aspects
of the Feasibility Study, and plans for 2019 will be announced in
due course. The Technical Report is available under the Company’s
profile on www.sedar.com. The press release in relation to the
resource update is available via the following link:
https://www.mkango.ca/s/news.asp?ReportID=844546
About Mkango Resources
Limited
Mkango's primary business is 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 51% held
Phalombe licence is the Songwe Hill rare earths deposit. This
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 included a 10,900 metre drilling programme and updated
mineral resource estimate.
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)
DisclosureCertain 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 with Talaxis, 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, Julia TilleyUK: +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 Jun 2024 to Jul 2024
Mkango Resources (TSXV:MKA)
Historical Stock Chart
From Jul 2023 to Jul 2024