CoTec Provides Additional £500,000 Funding to Mkango
CoTec Provides Additional £500,000 Funding to Mkango
LONDON and VANCOUVER, British Columbia, Sept. 07, 2022 -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company”
or “Mkango”) and CoTec Holdings Corp. (TSX-V: CTH) (“CoTec”) are pleased to announce that, further to the announcements
on 30 May and 21 June 2022, CoTec has agreed to advance a further £500,000 (C$755,000) to Mkango by way of a convertible
advance note (the “Advance”) and Mkango has agreed to extend CoTec’s exclusivity period with respect to the proposed
transaction, announced on 30 May 2022, until 30 November 2022. The Advance is to be completed no later than 15 September
2022. The terms of the Advance are consistent with the terms of the £500,000 advance that CoTec provided to Mkango in June
2022 (the “Initial Advance”). The conversion rights associated with the Advance remain subject to TSX Venture Exchange
approval.
CoTec may extend exclusivity to 31 December 2022 by completing the £2 million (C$3 million) convertible note to Mkango
(“Mkango Note”) by 15 October 2022. The value of the Advance and the Initial Advance will be off-set against the Mkango Note.
Market Abuse Regulation (MAR) Disclosure
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated
under the Market Abuse Regulations (EU) No. 596/2014 ('MAR') which has been incorporated into UK law by the European
Union (Withdrawal) Act 2018. Upon the publication of this announcement via Regulatory Information Service, this inside
information is now considered to be in the public domain.
About Mkango Resources Limited
Mkango's corporate strategy is to develop new sustainable primary and secondary sources of neodymium, praseodymium,
dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean technologies.
This integrated Mine, Refine, Recycle strategy differentiates Mkango from its peers, uniquely positioning the Company in the
rare earths sector.
Mkango is developing Songwe Hill in Malawi with a Feasibility Study completed in July 2022. Malawi is known as "The Warm
Heart of Africa", a stable democracy with existing road, rail and power infrastructure, and new infrastructure developments
underway.
In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical company and the second largest manufacturer of
nitrogen and compound fertilizers in the European Union, have agreed to work together towards development of a rare earth
Separation Plant at Pulawy in Poland (the “Pulawy Separation Plant”). The Pulawy Separation Plant will process the purified
mixed rare earth carbonate produced at Songwe Hill.
Through its ownership of Maginito ( www.maginito.com), Mkango is also developing 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 holds a 42% interest in UK rare earth (NdFeB) magnet recycler, HyProMag
(www.hypromag.com) with an option to increase its interest to 49%.
Mkango also has an extensive exploration portfolio in Malawi, including the Mchinji rutile exploration project, the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt project.
For more information, please visit www.mkango.ca
About CoTec Holdings Corp.
CoTec is an ESG-focused company investing in innovative technologies that have the potential to fundamentally change the
way metals and minerals can be extracted and processed. The Company is committed to supporting the transition to a lower
carbon future for the extraction industry, a sector on the cusp of a green revolution as it embraces technology and innovation.
CoTec is listed on the TSX Venture Exchange under the symbol CTH.
For more information, please visit www.cotec.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, and CoTec. Generally, forward looking statements can be identified by the use of words such as “plans”,
“expects” or “is expected to”, “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. 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, completion of the Transactions, governmental action relating to COVID
-19, COVID-19 and other market effects on global demand and pricing for the metals and associated downstream products for
which Mkango is exploring, researching and developing, factors relating the development of the Mkango UK Pilot Plant, the
Pulawy Separation Plant, including the outcome and timing of the completion of the feasibility studies, cost overruns,
complexities in building and operating the Separation Plant, changes in economics and government regulation, the positive
results of a feasibility study on the Pulawy Separation Plant and Songwe and delays in obtaining financing or governmental
approvals for, and the impact of environmental and other regulations relating to, Songwe, the Mkango UK Pilot Plant and the
Pulawy Separation Plant. 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 and CoTec disclaim any intention and assume 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 and CoTec undertake 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
[email protected] [email protected]
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
BlytheRay
Financial Public Relations
Tim Blythe
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
For further information on CoTec,
please contract:
CoTec Holdings Corp.
Braam Jonker
Chief Financial Officer
Canada: +1 604 992-5600
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.