Mkango Closes £750,000 (C$1.3m) Private Placement
Mkango Closes £750,000 (C$1.3m) Private Placement
Highlights
· Mkango Resources ("Mkango" or the "Company") has closed the previously announced
£750,000 (C$1.3M) private placement, including a £150,000 investment by Mkango CEO William
Dawes
· Use of proceeds include the acquisition of additional equipment to underpin HyProMag's
transition to first commercial sales of recycled NdFeB at Tyseley Energy Park in Birmingham, UK
targeted for H2 2024, and orders of long lead time equipment in Germany, unlocking additional
grant funding
· Discussions are ongoing with potential strategic investors, project finance providers, grant
funding bodies and other sources to finance recycling scale-up opportunities and further
technology roll-out
· The Company has completed a significant cost cutting exercise in recent months, whilst
streamlining operations to focus on recycling, which has enabled a significant reduction in the
ongoing capital requirements for the business
· Mkango has launched a review of strategic options for its advanced stage Songwe Hill Rare Earth
Project in Malawi and Pulawy Rare Earth Separation Project in Poland
London / Vancouver: April 11, 2024 - Mkango Resources Ltd. (AIM/TSX-V: MKA) is pleased to announce
that further to the Company's announcement of March 25, 2024, it has closed a private placement to
raise gross proceeds of £750,000 (approximately C$1.3 million) through the issuance of 15,000,000
common shares of the Company (the "Subscription Shares") at a price per Subscription Share of 5
pence ("p") (approximately C$0.086) (the "Subscription").
Accordingly, 15,000,000 Subscription Shares have now been issued pursuant to the private placement.
The Subscription Shares are subject to a statutory hold period in Canada expiring on August 13, 2024.
In addition to the Subscription Shares, the Company has issued an aggregate of 600,000
warrants to Jub Capital Management LLP ("Jub Capital"). Each warrant is exercisable for a period of
three years with an exercise price of 5p per warrant. The warrants (and the underlying shares) are
subject to a statutory hold period in Canada expiring on August 12, 2024.
The net proceeds of the Subscription, after fees, is £720,000 (approximately C$1.2 million). The
Company intends to use the net proceeds of the Subscription to acquire additional equipment for the
UK recycling business to underpin HyProMag's transition to first commercial sales of recycled NdFeB in
the UK targeted for H2 2024, orders of long lead time equipment in Germany, and to fund ongoing
recycling and corporate costs.
Admission to trading on AIM and Total Voting Rights
The Subscription Shares will rank pari passu with the Company's existing shares and application has
been made for the Subscription Shares to be admitted to trading on AIM ("Admission"). It is expected
that Admission will become effective and dealings in the Subscription Shares will commence at
8:00am, on 12th April, 2024.
In accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R) the Company hereby
notifies the market that immediately following Admission of the Subscription Shares, its issued and
outstanding share capital will consist of 268,453,574 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 Financial Conduct Authority's Disclosure and Transparency Rules.
The Subscription Shares will also be listed for trading on the TSX-V and will be subject to a statutory
hold period in Canada expiring on August 13, 2024.
About Mkango Resources Ltd.
Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to become a market leader in
the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito
Limited ("Maginito"), which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to
develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply
accelerating demand from electric vehicles, wind turbines and other clean energy technologies.
Maginito holds a 100 per cent interest in HyProMag and a 90 per cent direct and indirect interest
(assuming conversion of Maginito's convertible loan) in HyProMag GmbH, focused on short loop rare
earth magnet recycling in the UK and Germany, respectively, and a 100 per cent interest in Mkango
Rare Earths UK Ltd ("Mkango UK"), focused on long loop rare earth magnet recycling in the UK via a
chemical route.
Maginito and CoTec are also rolling out HyProMag's recycling technology into the United States via the
50/50 owned HyProMag USA LLC joint venture company.
Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths,
uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy
rare earths separation project in Poland. Discussions with the Government of Malawi in relation to the
Mining Development Agreement for Songwe Hill are ongoing.
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. Generally, forward looking statements can be
identified by the use of words such as "targeted", "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, receipt of TSX-V approval for the Subscription, the availability of (or delays in
obtaining) financing to develop Songwe Hill, and the various recycling plants in the UK, Germany and
the US as well as the separation plant in Poland, governmental action and other market effects on
global demand and pricing for the metals and associated downstream products for which Mkango is
exploring, researching and developing, geological, technical and regulatory matters relating to the
development of Songwe Hill, the ability to scale the HPMS and chemical recycling technologies to
commercial scale, competitors having greater financial capability and effective competing
technologies in the recycling and separation business of Maginito and Mkango, availability of scrap
supplies for recycling activities, government regulation (including the impact of environmental and
other regulations) on and the economics in relation to recycling and the development of the various
recycling and separation plants of Mkango and Maginito and future investments in the United States
pursuant to the cooperation agreement between Maginito and CoTec, the outcome and timing of the
completion of the feasibility studies, cost overruns, complexities in building and operating the plants,
and the positive results of feasibility studies on the various proposed aspects of Mkango's, Maginito's
and CoTec's activities. 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
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 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]
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe, Kasia Brzozowska
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
Tavistock Communications
PR/IR Adviser
Jos Simson, Cath Drummond
UK: +44 (0) 20 7920 3150
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.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is
approved by the Financial Conduct Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For
further information, please contact [email protected] or visit www.rns.com.RNS may use your IP address
to confirm compliance with the terms and conditions, to analyse how you engage with the information
contained in this communication, and to share such analysis on an anonymised basis with others as
part of our commercial services. For further information about how RNS and the London Stock
Exchange use the personal data you provide us, please see our Privacy Policy.
END
ROIIMMFTMTJBBLI