Mkango Announces US$ 2,000,000 Earn-In Agreement With MetalNRG for the Thambani Uranium License
April 29 2019 - 2:00AM
Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
announces that it has entered into a Non-Binding Heads of Terms
Agreement with MetalNRG PLC (NEX:MNRG) (“MetalNRG”), whereby
MetalNRG will earn up to a 75% interest in the Thambani Exclusive
Prospecting Licence (the “Thambani Licence”) in Malawi, by spending
up to US$2,000,000 on exploration.
The terms of the Non-Binding Heads of Terms
Agreement outline that the parties will enter into a Binding
Definitive Agreement (the “Definitive Agreement”) on or before the
30th June 2019 that shall include the following elements:
- MetalNRG must spend US$500,000 on exploration within the
Thambani Licence within 12 months of the date of the Definitive
Agreement, including a drilling programme totalling approximately
1500 metres (the “Initial Workplan”). The details of the
Initial Workplan will be determined in conjunction with Mkango. The
completion of this Initial Workplan shall entitle MetalNRG to a 25%
economic interest in the Thambani Licence, with such interest
limited to uranium only.
- After the completion of the Initial Workplan, MetalNRG may
elect to further explore and develop the Thambani License by
spending US$700,000 over the subsequent 12 months (the “Second
Workplan”). The completion of the Second Workplan shall entitle
MetalNRG to a 49% economic interest in the Thambani Licence,
limited to uranium.
- Following the completion of the Second Workplan, MetalNRG may
elect to further explore and develop the Thambani License by
spending US$800,000 over the subsequent 12 months (the “Third
Workplan”). The completion of the Third Workplan shall entitle
MetalNRG to a 75% economic interest in the Thambani Licence,
limited to uranium.
- Mkango to have right of first refusal on 100% of the offtake
for uranium and other minerals.
- If, following MetalNRG’s initial expenditure of US$500,000 and
the completion of the Initial Workplan, MetalNRG is not satisfied
with the exploration results produced during the first 12 months,
it may elect, at its sole discretion, to discontinue future funding
of the Second and Third Workplans, but it will retain a 25%
economic interest in the uranium assets and operations which are
the subject of the Thambani Licence. Subject to MetalNRG
electing to discontinue future funding of the Second and Third
Workplans, Mkango shall have the right to seek third party
investment in order to raise sufficient capital to develop further
the exploration area covered by the Thambani Licence. MetalNRG’s
25% economic interest will be diluted down when further exploration
/ development expenditure is made by Mkango or a third party.
Alexander Lemon, President of Mkango
Resources, said: "This transaction is another milestone
for Mkango and for Malawi, and is further endorsement of the
Company's strategy and potential. With MetalNRG funding the
Thambani uranium project and the previously announced transaction
with Talaxis funding Mkango’s Songwe Hill rare earths project,
Mkango shareholders can look forward to an exciting year of news
flow and progress in two of the market’s most strategic commodities
at present. We are pleased to be working with MetalNRG, and look
forward to a new drilling program being carried out at
Thambani.”
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.
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.
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.
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