Mkango Resources Limited (AIM/TSX-V: MKA) (“Mkango” or the
"Company") would like to provide the following corporate update in
response to the COVID-19 pandemic and on timing for completion of
the on-going Feasibility Study for its 51% owned Songwe Hill rare
earths project in Malawi (“Songwe”).
In these difficult times, Mkango is working
proactively to protect our staff and our business. The Company
remains focused on completion of the Feasibility Study for Songwe
and development of downstream opportunities through Maginito
Limited (“Maginito”), which includes Maginito’s 25% interest in
Hypromag Limited (“Hypromag”), a UK based company focused on rare
earth magnet recycling.
The Company is taking the necessary pre-emptive
precautions in response to COVID-19 and providing ongoing advice to
its staff in the country. In this rapidly evolving environment, we
are prioritising the safety of our employees. With the drill
programme for Songwe completed in 2018, most of our in-country
operations can be completed offsite, and all of our employees are
now working from home when possible. All travel has been
curtailed.
William Dawes, Chief Executive of Mkango
stated: “The welfare of the Company’s staff remains the
main priority for Mkango. Whilst the current market environment is
very challenging, Mkango’s strong financial position means the
Company is well positioned to weather ongoing market uncertainty
for the foreseeable future. The impact of COVID-19 has focused
attention on the vulnerability of supply chains globally, already a
major concern in the rare earths sector prior to the pandemic, and
Mkango looks forward to further engagement with Government and
market participants to play a major role in future development of a
robust and sustainable rare earth supply chain for global
markets.”
Mkango continues to be in a strong financial
position with a current unaudited consolidated cash position
totaling approximately US$7.4 million.
In November 2017, Mkango entered into an
agreement with Talaxis Limited (“Talaxis”) to fund the feasibility
study for Songwe. Talaxis has invested £12 million in Lancaster
Exploration Limited, (“Lancaster”), Mkango’s subsidiary which owns
the Songwe project, for 49% of Lancaster. Talaxis also has an
option to acquire a further 26% of Lancaster by arranging financing
for project development including funding the equity component
thereof. Talaxis also holds a 24.5% interest in Maginito.
Whilst the Feasibility Study is continuing with
work underway in Australia, South Africa and the UK, the Company
believes it is inevitable that some workstreams will be impacted,
however the degree of impact is currently uncertain. Following a
review of the various ongoing workstreams, the Company is now
targeting completion of the Feasibility Study in the second half of
2021, in line with an anticipated more stable market environment
and favourable backdrop to advance project development. We note,
however, that extended periods of COVID-19 disruption may further
impact this timing.
Operations at HyProMag are continuing where
possible, in line with current UK government guidelines.
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 licenses in Malawi: the
Phalombe licence, the Thambani licence, the Chimimbe Hill licence
and the Mchinji 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 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 three 100% held licences are, in the Thambani licence,
uranium, niobium, tantalum and zircon, in the Chimimbe Hill
licence, nickel and cobalt, and in the Mchinji licence, rutile,
nickel, cobalt, base metals and graphite.
Mkango also holds a 75.5% interest in Maginito
with the balance owned by Talaxis. Maginito is focused on
downstream opportunities relating to the rare earths supply chain,
in particular, recycling and other innovative technologies for the
production of neodymium alloy powders and magnets used in electric
vehicles, wind power and other industries geared to decarbonisation
of the economy.
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.
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 effects of COVID-19
on Mkango’s business, global market for rare earth metals the
Company is exploring for, completion of the feasibility study for
Songwe. 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, governmental action
relating to COVID-19, COVID-19 and other market effects on global
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 and 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.ca |
Alexander LemonPresidentalex@mkango.ca |
Canada: +1 403 444 5979
www.mkango.ca@MkangoResources
BlytheweighFinancial Public
RelationsTim Blythe, Camilla HorsfallUK: +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