REG - Mkango Resources Ltd - MKANGO CLOSES £750,000 (C$1.3M) PRIVATE PLACEMENT

Mkango ResourcesAnnouncement

11/04/2024 07:00

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RNS Number : 1017K  Mkango Resources Limited  11 April 2024

 

 

 

 

MKANGO RESOURCES LTD.

550 Burrard Street

Suite 2900

Vancouver

BC V6C 0A3

Canada

 

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 12(th) 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 (http://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

will@mkango.ca                             alex@mkango.ca

Canada: +1 403 444 5979

www.mkango.ca (http://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

mkango@tavistock.co.uk

 

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.

 

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