Nickel - Cobalt Exploration Licence Granted in Malawi
1
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
Nickel - Cobalt Exploration Licence Granted in Malawi
London / Calgary: November 29, 2017 - Mkango Resources Ltd. (AIM/TSX -V: MKA) (the " Company" or
"Mkango") is pleased to announce that it has been granted an Exclusive Prospecting Licence (EPL0475/17) (the
“Chimimbe Hill” licence) covering the Chimimbe Hill nickel – cobalt deposit and other targets in Mchinji district,
central Malawi.
Highlights
• The Chimimbe Hill licence covers an a rea of 98.48 sq km and features laterite and saprolite hosted
nickel, cobalt, chrome and other mineralisation
• Significant historical exploration has been completed, including pitting, drilling and metallurgical test
work
• Magnetic anomalies in the licence a rea indicate exploration potential for additional nickel – cobalt
mineralisation
Mkango will re -evaluate the Chimimbe Hill deposit in the context of geophysical data produced by the recent
World Bank airborne geophysical survey of Malawi, recent infrastructure developments in the region, potential
synergies with the Company’s Songwe Hill rare earths project and Thambani uranium -tantalum-niobium
project, both in Malawi, option s relating to sulphuric acid and / or alternative reagents supply, potential by -
products, as well as opportunities to produce nickel and cobalt products for the battery electric vehicle market.
The evaluation of the licence will be funded from the Company’s existing working capital , which totaled
US$869,479 as at September 30, 2017. Subsequently, Mkango announced the receipt of £241,995
(US$320,135) from the exercise of warrants.
Alexander Lemon, President of Mkango, said: "We are delighted to have been granted the Chimimbe Hill
nickel – cobalt exploration licence, which is consist ent with our strategy to target raw materials and
technologies geared to accelerating growth in the electric vehicle market. Both nickel and cobalt are
increasingly in demand as cathode materials for batteries in electric vehicles. This new licence, when combined
with the Songwe Hill rare earths project and our collaboration with Metalysis on neodymium alloys for
permanent magnets, positions Mkango as a potential future supplier of the critical raw materials used in both
batteries and permanent magnet motors in electric vehicles.
We are commencing a full historical data review for Chimimbe Hill, including an evaluation of exploration
potential from recent geophysics, and look forward to updating shareholders on this new licence and the
recently announced transaction with Talaxis in due course.”
Chimimbe Hill Exploration Licence
The Chimimbe Hill licence has been granted for the exploration of nickel, cobalt, graphite, chrome and other
minerals and covers an area of 98.48 sq km in the Mchinji district of Central Malawi. The licence is initially
2
awarded for a 3 -year term, after which it can be renewed twice for further two -year periods with a 50%
reduction in the licence size required with each renewal. The Chimimbe Hill area was selected follo wing
comprehensive in -house analysis of available datasets. These included geological maps, historic mineral
occurrences, remote sensing data and satellite imagery. A nickel anomaly was first identified by the Malawian
Geological Survey in 1968.
Chimimbe Hill is a prominent northerly trending elongate feature, measuring 1200 metres by 500 metres and
rising 140 metres above the surrounding plain. Located in Mchiniji district, approximately 80km west of
Lilongwe, Malawi’s capital city, Chimimbe Hill is underlain by a deformed and metamorphosed ultramafic body
associated with high grade metamorphic rocks of the Mozambique mobile belt.
Scientific and technical information contained in this release has been approved and verified by Dr. Scott
Swinden of Swinden Geoscience Consultants Ltd, who is a "Qualified Person" in accordance with National
Instrument 43-101 -Standards of Disclosure for Mineral Projects.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have bee n 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 the 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 three exclusive prospecting licenses in Malawi, the Phalombe licence, the
Thambani licence and the Chimimbe Hill licence.
The main exploration target in the Phalombe licence is the Songwe Hill rare earths’ deposit (“Songwe”), 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.
In November 2017, Mkango entered into an agreement with Talaxis Limited (“Talaxis”) , a wholly owned
subsidiary of Noble Group Limited, whereby , subject to regulatory approval, Talaxis will fully fund a bankable
feasibility study for Songwe by investing £12 million (C$20 million) for a 49% interest in the project. Talaxis will
also have the option to acquire a further 26% interest in the project by arranging funding for project
development.
In additi on, by investing a further £2 million (C$3.3 million), Talaxis may acquire a 49% interest in a new
venture to be established by Mkango focused on neodymium alloy powders, magnet and other technologies.
This includes the collaboration with Metalysis Ltd announced in September 2017, which is focused on advanced
alloys using neodymium or praseodymium with other elements for permanent magnet manufacturing.
Permanent magnets are critical materials for most electric vehicles, direct drive wind turbines and many other
high growth applications. Neodymium is a key rare earth component at Songwe.
Talaxis and Mkango have also agreed to cooperate as preferred partners on rare earths projects worldwide and
on other projects in Malawi.
The main exploration targets of Mkango’s remaining two licences are, in the Thambani licence, uranium,
niobium, tantalum and zircon and, in the Chimimbe Hill licence, nickel and cobalt.
3
For more information, please visit www.mkango.ca.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements. Readers are cautioned not to place undue reliance
on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upo n
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, projectio ns 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 st atements. Such factors and risks
include, without limiting the foregoing, delays in obtaining financing or governmental or stock exchange
approvals. The forward-looking statements contained in this press release are made as of the date of this press
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. Additi onally, 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
Blytheweigh
Financial Public Relations
Tim Blythe, Camilla Horsfall, Nick Elwes
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Jeff Keating , Caroline Rowe
UK: +44 20 3470 0470
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 o r 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.