Mkango Closes £1.25M (C$2.19M) Private Placement
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MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO CLOSES £1.25M (C$2.19M) PRIVATE PLACEMENT
London / Vancouver: September 5, 2024 – Mkango Resources Ltd. (AIM/TSX -V: MKA) is pleased to announce
that further to the Company’s announcement of August 21, 2024, it has closed a private placement to raise gross
proceeds of £1,250,000 (approximately C$2.2 million) through the issuance of 25,000,000 common shares of the
Company (the “Subscription Shares”) at a price per Subscription Share of 5 pence (“p”) (approximately C$0.088)
(the “Subscription”).
Accordingly, 25,000,000 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 January 5, 2025.
Furthermore 25,000,000 warrants (“Warrants”) (one Warrant for each Subscription Share) have been issued.
Each Warrant will entitle the holder to acquire one common share at a price of £0.07 per common share
(“Mkango Share”) for a period of 3 years following the closing of the Subscription (i.e. up until September 4,
2027)
In addition to the Subscription Shares and Warrants, the Company has issued an aggregate of 1,250,000 warrants
(“Broker Warrants”) to Jub Capital Management LLP (“Jub Capital”) . Each Broker Warrant i s exercisable for a
period of three years with an exercise price of 5p per Broker Warrant. The Warrants and Broker Warrants (and
the underlying shares) are subject to a statutory hold period in Canada expiring on January 5, 2025.
The net proceeds of the Subscription , after fees , is £1,187,500 (approximately C$2.1 million). The Company
intends to use the net proceeds of the Subscription to acquire additional equipment for the 2025 commercial
development of rare earth magnet recycling operations at Tyseley Energy Park in Birmingham, UK and at
Pforzheim, Germany, by HyProMag Limited and HyProMag GmbH, in addition to working capital.
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 today, on 5th September,
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 293,453,574 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 January 5, 2025.
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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. HyProMag is also evaluating other jurisdictions, and recently
launched a collaboration with Envipro on rare earth magnet recycling in Japan.
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.
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”, “expec ts” 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 occ ur, 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 li miting the
foregoing, the availability of (or delays in obtaining) financing to develop the various recycling plants in the UK,
Germany, governmental action and other market effects on global demand and pricing for the metals and
associated downstream products for which Mkango is researching and developing, , 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 separati on business of Maginito, 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 plants
of 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 Maginito’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 Co mpany 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
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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
UK: +44 20 3470 0470
Alternative Resource Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
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.