Mkango Announces Exercise of Warrants
Mkango Announces Exercise of Warrants
LONDON and CALGARY, Alberta, Oct. 19, 2018 -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
announces the exercise of warrants over 1,133,333 common shares without par value in the share capital of the Company
("New Shares") at an exercise price of C$0.15 each, for an aggregate consideration of C$170,000.
The New Shares will rank pari passu with the existing shares and application has been made for the New Shares to be
admitted to trading on AIM ("Admission"). It is expected that Admission will become effective and dealings in the New Shares
will commence at 8:00a.m. on or around 25th October 2018. The New Shares will also trade on the Toronto Venture Exchange.
In accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market
that immediately following Admission, its issued share capital will consist of 111,052,218 shares. The Company does not hold
any shares in treasury. Shareholders may use this figure as the denominator for the calculations by which they will determine
if they are required to notify their interest in, or a change to their interest in, the Company under the FCA's Disclosure and
Transparency Rules.
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 three
exclusive prospecting licenses in Malawi, the Phalombe licence, the Thambani licence and the Chimimbe Hill licence.
The main exploration target in the 80% held Phalombe licence is the Songwe Hill rare earths deposit, which 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 include a recently completed 10,900 metre drilling programme.
Pursuant to an agreement with Talaxis Limited, Talaxis is fully funding the Feasibility Study by investing £12 million for a 49%
interest in the project (via Mkango subsidiary Lancaster Exploration Ltd). Talaxis will also have the option to acquire a further
26% interest by arranging funding for project development including funding the equity component thereof.
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 Lemon
Chief Executive Officer President
[email protected] [email protected]
UK: +44 207 3722 744
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Blytheweigh
Financial Public Relations
Tim Blythe, Camilla Horsfall, Julia Tilley
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, Rob Collins
UK: +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.