REG - Mkango Resources Ltd - ESHIA APPROVAL FOR SONGWE HILL RARE EARTHS PROJECT

Mkango ResourcesAnnouncement

26/01/2023 07:01

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RNS Number : 8248N  Mkango Resources Limited  26 January 2023

 

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street

Suite
2900

Vancouver

BC V6C
0A3

Canada

 

MKANGO RECEIVES ESHIA APPROVAL FOR THE SONGWE HILL RARE EARTHS PROJECT

 

 

London, U.K. and Vancouver, Canada - January 26, 2023 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango")  is very pleased to announce
that the Malawi Environmental Protection Agency ("MEPA") has approved the
Environmental Social Health Impact Assesment ("ESHIA") for Mkango's flagship
Songwe Hill Rare Earths Project ("Songwe Hill") in the Phalombe district of
Malawi.

 

The approval of the ESHIA is a significant milestone in the Mining Development
Agreement ("MDA") approval process, it is a fundamental requirement for the
Company to be granted a mining licence and is expected to unlock significant
stakeholder value and future investment for the development of Sub-Saharan
Africa's first large scale, commercial rare earth mining and processing
operation in Malawi.

 

Mkango President Mr Alexander Lemon stated;

 

"The approval of the ESHIA for the Songwe Hill Rare Earths project is a major
achievement for Mkango and Malawi's first rare earth mining project. We would
like to thank the Malawian government for their ongoing cooperation and
support and the Malawi Environmental Protection Agency for their advice and
support during the ESHIA engagement, review and approval process. We look
forward to the Mining Licence and MDA being approved in the coming weeks.

 

"The Malawi Ministry of Justice has appointed a London based international law
firm with mining expertise to carry out a final review of the Mining
Development Agreement ("MDA") and we are hoping to shortly conclude an
agreement that is a win-win for both the Nation of Malawi and all of Mkango's
stakeholders."

 

The ESHIA was undertaken by Digby Wells Environmental Limited
(https://www.digbywells.com/about-digby-wells/
(https://www.digbywells.com/about-digby-wells/) ) in compliance with the
latest International Finance Corporation ("IFC") Performance Standards and the
Malawi Environmental Management Act, No. 19 of 2017.

 

 

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.

About Mkango Resources Limited

Mkango's corporate strategy is to develop new sustainable primary and
secondary sources of neodymium, praseodymium, dysprosium and terbium to supply
accelerating demand from electric vehicles, wind turbines and other clean
technologies. This integrated Mine, Refine, Recycle strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare earths
sector.

Mkango is developing Songwe Hill in Malawi with a Feasibility Study completed
in July 2022. Malawi is known as "The Warm Heart of Africa", a stable
democracy with existing road, rail and power infrastructure, and new
infrastructure developments underway.

In parallel, Mkango and Grupa Azoty PULAWY, Poland's leading chemical company
and the second largest manufacturer of nitrogen and compound fertilizers in
the European Union, have agreed to work together towards development of a
rare earth Separation Plant at Pulawy in Poland (the "Pulawy Separation
Plant"). The Pulawy Separation Plant will process the purified mixed rare
earth carbonate produced at Songwe Hill.

Through its ownership of Maginito (www.maginito.com (http://www.maginito.com/)
), Mkango is also developing green technology opportunities in the rare earths
supply chain, encompassing neodymium (NdFeB) magnet recycling as well as
innovative rare earth alloy, magnet, and separation technologies. Maginito
holds a 42% interest in UK rare earth (NdFeB) magnet recycler, HyProMag
(www.hypromag.com (http://www.hypromag.com/) ) with an option to increase its
interest to 49%.

Mkango also has an extensive exploration portfolio in Malawi, including the
Mchinji rutile exploration project, the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt project.

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
"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, governmental action relating to COVID-19, COVID-19 and other
market effects on global demand and pricing for the metals and associated
downstream products for which Mkango is exploring, researching and developing,
factors relating the development of Mkango rare eaths recycling capability and
the Pulawy Separation Plant, including the outcome and timing of the
completion of the feasibility studies, cost overruns, complexities in building
and operating  recycling and separation plants, changes in economics and
government regulation, and delays in obtaining financing or governmental
approvals for, and the impact of environmental and other regulations relating
to, Songwe and the recycling and  separation plants. 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 disclaim 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

 

BlytheRay

Financial Public Relations

Tim Blythe

UK: +44 207 138 3204

 

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.

 

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