Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango"),
is pleased to provide an update on the Songwe Hill rare earths
project and Thambani uranium-tantalum-niobium project in Malawi.
Songwe
The feasibility study for the Songwe Hill Rare
Earths project continues to progress, fully funded by strategic
partner, Talaxis Limited, a subsidiary of Noble Group.
Mkango is pleased to confirm that the recently
shipped 60 tonne bulk rock sample for mineral processing and
metallurgical pilot test work studies has now arrived into
Fremantle Port in Western Australia. Optimisation of the mineral
processing flowsheet continues to progress well and we look forward
to updating shareholders further in due course.
On August 7th, Mkango welcomed the recently
appointed Honourable Minister of Natural Resources, Energy and
Mining, the Honourable Binton Kutsaira, Deputy Minister Mungasulwa
Mwambande and Chief Director Oliver Kambambe, leading a large
government delegation visiting the Songwe Hill rare earths project
and local corporate social responsibility initiatives.
Honourable Binton Kutsaira, Minister of
Natural Resources, Energy and Mining for Malawi,
said, “I am overwhelmed with the progress being
made by Mkango Resources at the Songwe Hill Rare Earths exploration
project in Phalombe District. I commend Mkango for being exemplary
in the field of Corporate Social Responsibility and for being
transparent with all stakeholders regarding its operations, as it
continues to fast track its Rare Earth mineral exploration and
bankable feasibility studies. The advancement of the Songwe Hill
project offers real hope to the nation of Malawi that it will have
a producing rare earths mine in the near future. The government of
Malawi is 100% committed to supporting investors in the mining
sector such as Mkango Resources Limited, as mining is a priority on
the government’s agenda of transforming the economy of the
Malawi.”
Alexander Lemon, President of Mkango,
said: "We believe that the Songwe Rare Earths project will
be transformational for the Nation of Malawi, enabling it to become
an important sustainable producer of Rare Earth Elements which are
so necessary for the efficient future electrification of transport
systems and renewable energy such as direct drive wind turbines, as
well as many other hi-tech applications. At the same time
empowering local communities and validating Malawi's credentials as
one of Africa's premier investment destinations. We are very
appreciative of the support received from the Government of Malawi
and all stakeholders as we develop the project through its
Definitive Feasibility Study.”
Thambani
Mkango’s Chief Geologist, Dr Paul Armitage, and
a team of 5 geologists with logistical support are currently
carrying out a detailed exploration work programme in the Thambani
exclusive prospecting license, which features multiple zones of
nepheline-syenite-hosted uranium, tantalum and niobium
mineralization, with a number of extensive uranium radiometric
anomalies.
The programme is following up on the previous
Mkango exploration results and includes further ground truthing of
radiometric anomalies, rock sampling on outcrop, and collection of
samples from new trenches. In parallel, Mkango are continuing to
evaluate partnership opportunities for the project.
All costs associated with the work programme are
being covered out of existing cash resources and further updates
will be provided on Thambani in due course.
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
Dawes
Alexander LemonChief Executive Officer
Presidentwill@mkango.ca
alex@mkango.caUK: +44 207 3722 744Canada: +1 403 444
5979www.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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