Mkango Raises £2.34M (C$4.11M) to Advance Rare Earth Magnet Recycling IN UK and Germany
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MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO RAISES £2.34M (C$4.11M) TO ADVANCE RARE EARTH MAGNET RECYCLING IN UK AND GERMANY
London / Vancouver: January 20, 2025 – Mkango Resources Ltd. (AIM/TSX-V: MKA) is pleased to announce that
it has conditionally raised gross proceeds of £2.34million (approximately C$4.11 million) through the issuance,
on a private placement basis, of 29,187,500 common shares of the Company (the “Subscription Shares”) at a
price per Subscription Share of 8 pence (“p”) (approximately C$0.14) (the “Issue Price”) (the “Subscription”).
William Dawes, Chief Executive of Mkango stated: “We are delighted by the continued support and confidence
from our existing shareholders, reflected in this £ 2.34million investment. This funding will enable Mkango to
maintain momentum on achieving commercial production in the UK and the development of the Germany
operation.
Concurrently, we continue to work toward s execution of the proposed Business Combination Agreement in
relation to the previously announced SPAC transaction, which once executed, is expected to bring us a step closer
to extracting significant value from our Songwe Hill and Pulawy Rare Earths Projects.
Mkango has conditionally raised gross proceeds of £2.34million (approximately C$4.11million) through the
issuance, on a private placement basis, of 29,187,500 Subscription Shares at a price per Share of 8p
(approximately C $0.14). The net proceeds of the Subscription after fees is expected to be £2.22million
(approximately C$3.90million). The issue price equates to a discount of 21% and 20% to the trailing five -day
volume weighted average price (“VWAP”) of Mkango’s shares on AIM and TSX-V respectively at the closing prices
on 17 January 2025. The Company intends to use the net proceeds of the Subscription to fund ongoing recycling
development costs in Germany and the UK, and to fund ongoing corporate costs.
The Subscription is expected to close on or around 31st January, 2025 and is subject to the receipt of all necessary
approvals including the approval of the TSX-V, and admission of the Subscription Shares to trading on AIM.
The Subscription Shares will rank pari passu with the Company’s existing shares and application will be 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 or around 31st January
2025. The Subscription Shares will be subject to a statutory hold period in Canada expiring on the date that is
four months and one day from issuance of the Subscription Shares, and will also be listed for trading on the TSX-
V, provided that approval of such listing from the TSX-V is obtained.
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 and outstanding share capital will consist of
326,266,261 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.
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In connection with the Placing, Mkango has agreed to pay, at completion of the Placing, commissions of 5% in
cash and 5% in non-transferable broker warrants, in each case with reference to cash raised by each of Jub Capital
Management LLP (“JUB Capital”) and Alternative Resource Capital, a trading name of Shard Capital Partners LLP
(“ARC”). In addition, JUB Capital and ARC will be entitled to a corporate finance fee of £ 5,000 (approximately
C$8,800) each. The broker warrants will have a term of 3 years from issue and an exercise price of 8 pence
(approximately C$0. 14). The total number of broker warrants to be issued on completion of the Placing is
1,459,375. Payment of the commissions (and issuance of the warrants) to the brokers is subject to acceptance
of the TSX-V. The shares issuable pursuant to exercise of the broker warrants will be subject to a statutory hold
period in Canada expiring on the date that is four (4) months and one day from issuance of the warrants.
About Mkango
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.
For more information, please visit www.mkango.ca
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.
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
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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 Hi ll, 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 Mag inito 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 t he 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 undertake s 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, Jen Clarke, Devik Mehta
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.