Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango"),
is pleased to announce that it has been granted a new Exclusive
Prospecting License (EPL0544/19) (the "Mchinji" license) in Mchinji
district, central Malawi.
Highlights
The Mchinji licence covers an area of 868.69 km2
and is adjacent to licences with known mineral potential including
the Company’s Chimimbe Hill nickel-cobalt licence to the south.
Mkango will evaluate all historical data over
the Mchinji licence area for exploration targets in the context of
geophysical data produced by a countrywide airborne survey
completed by the World Bank in 2016. Exploration will focus on
nickel-cobalt, gold, base metals, and graphite.
The evaluation of the licence will be funded
from the Company's existing working capital.
Alexander Lemon, President of Mkango,
said: "We are delighted to have been granted the Mchinji
exploration licence, which strengthens the Company’s strategic
licence position in Malawi. We are commencing a full historical
data review to identify exploration targets, and look forward to
updating shareholders on this new licence in due course."
Mchinji Exploration Licence
The Mchinji licence has been granted for the
exploration of nickel, cobalt, gold, base metals, graphite,
Platinum Group Metals, ilmenite, vanadium, chrome, uranium, rare
earth elements and other minerals. The licence is initially awarded
for a three-year term, after which it can be renewed twice for
further two-year periods with a 50% reduction in the licence size
required with each renewal.
Scientific and technical information contained
in this release has been approved and verified by Dr. Scott Swinden
of Swinden Geoscience Consultants Ltd, who is a "Qualified Person"
in accordance with National Instrument 43-101 -Standards of
Disclosure for Mineral Projects.
The feasibility study for the Songwe Hill Rare
Earths project continues in parallel, fully funded by strategic
partner, Talaxis Limited, a subsidiary of Noble Group.
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.
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 four exclusive prospecting licences in Malawi: the
Phalombe licence, the Thambani licence, the Chimimbe Hill and
Mchinji licences.
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 an updated
mineral resource estimate, announced in February 2019. In March
2019, the Company announced receipt of a £7 million (C$12.3
million) investment from Talaxis to fund completion of 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.
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 DawesChief Executive
Officerwill@mkango.caUK: +44 207 3722 744Canada: +1 403 444
5979www.mkango.ca@MkangoResources |
Alexander
LemonPresidentalex@mkango.ca |
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.
A map accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/1b756854-9dbd-4726-a80e-7b081eae5136
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