Mkango Announces US$ 2,000,000 Earn-In Agreement With MetalNRG for the Thambani Uranium License
Mkango Announces US$ 2,000,000 Earn-In Agreement With MetalNRG for the
Thambani Uranium License
LONDON and VANCOUVER, British Columbia, April 29, 2019 -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company"
or "Mkango") announces that it has entered into a Non-Binding Heads of Terms Agreement with MetalNRG PLC (NEX:MNRG)
(“MetalNRG”), whereby MetalNRG will earn up to a 75% interest in the Thambani Exclusive Prospecting Licence (the
“Thambani Licence”) in Malawi, by spending up to US$2,000,000 on exploration.
The terms of the Non-Binding Heads of Terms Agreement outline that the parties will enter into a Binding Definitive Agreement
(the “Definitive Agreement”) on or before the 30th June 2019 that shall include the following elements:
• MetalNRG must spend US$500,000 on exploration within the Thambani Licence within 12 months of the date of the
Definitive Agreement, including a drilling programme totalling approximately 1500 metres (the “Initial Workplan”). The
details of the Initial Workplan will be determined in conjunction with Mkango. The completion of this Initial Workplan
shall entitle MetalNRG to a 25% economic interest in the Thambani Licence, with such interest limited to uranium only.
• After the completion of the Initial Workplan, MetalNRG may elect to further explore and develop the Thambani License
by spending US$700,000 over the subsequent 12 months (the “Second Workplan”). The completion of the Second
Workplan shall entitle MetalNRG to a 49% economic interest in the Thambani Licence, limited to uranium.
• Following the completion of the Second Workplan, MetalNRG may elect to further explore and develop the Thambani
License by spending US$800,000 over the subsequent 12 months (the “Third Workplan”). The completion of the Third
Workplan shall entitle MetalNRG to a 75% economic interest in the Thambani Licence, limited to uranium.
• Mkango to have right of first refusal on 100% of the offtake for uranium and other minerals.
• If, following MetalNRG’s initial expenditure of US$500,000 and the completion of the Initial Workplan, MetalNRG is not
satisfied with the exploration results produced during the first 12 months, it may elect, at its sole discretion, to
discontinue future funding of the Second and Third Workplans, but it will retain a 25% economic interest in the uranium
assets and operations which are the subject of the Thambani Licence. Subject to MetalNRG electing to discontinue
future funding of the Second and Third Workplans, Mkango shall have the right to seek third party investment in order to
raise sufficient capital to develop further the exploration area covered by the Thambani Licence. MetalNRG’s 25%
economic interest will be diluted down when further exploration / development expenditure is made by Mkango or a third
party.
Alexander Lemon, President of Mkango Resources, said: "This transaction is another milestone for Mkango and for
Malawi, and is further endorsement of the Company's strategy and potential. With MetalNRG funding the Thambani uranium
project and the previously announced transaction with Talaxis funding Mkango’s Songwe Hill rare earths project, Mkango
shareholders can look forward to an exciting year of news flow and progress in two of the market’s most strategic commodities
at present. We are pleased to be working with MetalNRG, and look forward to a new drilling program being carried out at
Thambani.”
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 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 updated mineral resource estimate.
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 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.