REG - Mkango Resources Ltd - MKANGO AND COTEC PROVIDE TRANSACTION UPDATE

Mkango ResourcesAnnouncement

28/10/2022 13:00

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RNS Number : 5189E  Mkango Resources Limited  28 October 2022

MKANGO RESOURCES
LTD.
COTEC HOLDINGS CORP.

550 Burrard
Street
755 Burrard Street

Suite
2900
Suite 428

Vancouver
Vancouver

BC V6C
0A3
V6Z 1X6

Canada
Canada

 

MKANGO AND COTEC PROVIDE TRANSACTION UPDATE

 

London, U.K. and Vancouver, CANADA - October 28 , 2022 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") and CoTec Holdings Corp. (TSX-V:
CTH) ("CoTec") are pleased to provide an update on the transaction announced
on 30 May 2022. The parties are currently finalising documentation and, in
order to accommodate delayed timelines, CoTec has agreed to advance a further
£222,500 (US$250,000) to Mkango by way of a convertible advance note (the
"Advance") and Mkango has agreed to extend the exclusivity period to 23(rd)
December 2022. The terms of the Advance are consistent with the terms of the
advance that CoTec provided to Mkango in September 2022. The conversion rights
associated with the Advance remain subject to TSX Venture Exchange approval.

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)

About CoTec Holdings Corp.

CoTec is a publicly traded investment issuer listed on the Toronto Venture
Stock Exchange ("TSX-V") and trades under the symbol CTH.V. The Company is an
ESG-focused company investing in innovative technologies that have the
potential to fundamentally change the way metals and minerals can be extracted
and processed for the purpose of applying those technologies to undervalued
operating assets and recycling opportunities, as the Company seeks to
transition into a mid-tier mineral resource producer.

For more information, please visit www.cotec.ca (http://www.cotec.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,  and
CoTec. 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, completion of the Transactions, 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 the Mkango UK
Pilot Plant, the Pulawy Separation Plant, including the outcome and timing of
the completion of the feasibility studies, cost overruns, complexities in
building and operating the Separation Plant, changes in economics and
government regulation, the positive results of a feasibility study on the
Pulawy Separation Plant and Songwe and delays in obtaining financing or
governmental approvals for, and the impact of environmental and other
regulations relating to, Songwe, the Mkango UK Pilot Plant and the Pulawy
Separation Plant. 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 and CoTec 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 and CoTec undertake 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

 

For further information on CoTec, please contract:

 

CoTec Holdings Corp.

Braam Jonker

Chief Financial Officer

braam.jonker@cotec.ca

Canada: +1 604 992-5600

 

 

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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