Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce the appointment of Bacchus Capital Advisers
Limited (“Bacchus Capital”) as strategic and financial adviser,
encompassing mergers and acquisitions, takeover defence, strategic
and other financial advice.
Bacchus Capital is a London-based independent
investment and merchant banking boutique. The Bacchus Capital team
members have been involved in building some of the world’s most
successful mining companies from the earliest stages and have
played a key role in many of the metals and mining industry’s most
significant transactions in recent decades.
William Dawes, Chief Executive of Mkango
stated: “We are very pleased to appoint Bacchus Capital as
strategic and financial adviser. This comes at a critical time in
Mkango’s development, against the backdrop of transformational
changes in the rare earths sector, and we look forward to working
with Bacchus Capital to best position the company for new
opportunities and to increase value for shareholders.”
Richard Allan, Managing Director and COO
of Bacchus Capital stated: “We are excited to begin
working with Mkango at a time when the wider market is starting to
appreciate the material structural supply deficit facing critical
materials, such as rare earths. Mkango will play an important role
in supplying the increasing demand for the rare earths required to
support a global shift towards a sustainable economy, specifically
in light of the increased demand for electric vehicles and wind
power.”
Under the terms of the advisory agreement,
Bacchus Capital will receive a fee of US$30,000 and, subject to TSX
Venture Exchange approval, 325,000 shares on 31 January 2021, and a
further 625,000 shares on 18 December 2021 should its engagement
continue with the Company until such date.
About
Mkango
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 recently completed
an extensive exploration program following a new rutile discovery
within the Mchinji licence.
Mkango also holds a 75.5% interest in Maginito
(www.maginito.com) with the balance owned by Talaxis. Maginito was
established by Mkango and Talaxis to pursue downstream green
technology opportunities in the rare earths supply chain,
encompassing neodymium (NdFeB) magnet recycling as well as
innovative rare earth alloy, magnet and separation
technologies.
Maginito’s strategy is underpinned by offtake
rights for sustainably sourced primary and secondary raw materials,
and geared to accelerating growth in the electric vehicle sector,
wind power generation and other industries driven by
decarbonization 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 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 Dawes |
Alexander Lemon |
Chief Executive Officer |
President |
will@mkango.ca |
alex@mkango.ca |
Canada: +1 403 444 5979 |
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|
www.mkango.ca |
|
@MkangoResources |
|
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|
Blytheweigh |
|
Financial Public Relations |
|
Tim Blythe |
|
UK: +44 207 138 3204 |
|
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|
SP Angel Corporate Finance LLP |
|
Nominated Adviser and Joint Broker |
|
Jeff Keating, Caroline Rowe |
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UK: +44 20 3470 0470 |
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Alternative Resource Capital |
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Joint Broker |
|
Alex Wood |
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UK: +44 20 7186 9004 |
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Bacchus Capital Advisers |
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Strategic and Financial Adviser |
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Richard Allan |
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UK: +44 20 3848 1642 |
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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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