REG - Mkango Resources Ltd - Mkango releases year-end 2022 financial statements

Mkango ResourcesAnnouncement

02/05/2023 07:00

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RNS Number : 9863X  Mkango Resources Limited  02 May 2023

 

 

 

 

MKANGO RESOURCES
LTD.

550 Burrard
Street

Suite
2900

Vancouver

BC V6C
0A3

Canada

 

2 May 2023

 

Mkango releases year-end 2022 financial statements, appoints Investor
Relations Adviser and issues shares to Bacchus Capital

 

LONDON and VANCOUVER, British Columbia, 2 May 2023 (GLOBE NEWSWIRE) -- Mkango
Resources Ltd (AIM / TSX-V:MKA) (the "Company" or "Mkango"), is pleased to
announce that it has released the Financial Statements and Management's
Discussion and Analysis for the period ending 31 December 2022. The reports
are available under the Company's profile on SEDAR (www.sedar.com) and on the
Company's website (https://mkango.ca/investors/financials/
(https://mkango.ca/investors/financials/) ).

 

Furthermore, the Company announces that it has entered into an agreement (the
"Agreement") with Tavistock Communications Ltd ("Tavistock") to act as
Mkango's retained communications and investor relations adviser with immediate
effect. As consideration for the services to be provided, Tavistock will
receive cash compensation in the amount of £4,250 per month.

Tavistock is a leading corporate and financial communications consultancy
based in London. Tavistock currently holds no securities of Mkango, however,
Tavistock may from time to time acquire or dispose of securities of the
Company through the market, privately or otherwise, as circumstances or market
conditions warrant and in accordance with applicable securities laws. The
Agreement can be terminated with three months' notice by either party and is
subject to the approval of the TSX Venture Exchange ("TSX-V").

Lastly, Mkango has issued 224,317 shares (the "Shares") to Bacchus Capital
Advisors Limited ("Bacchus Capital"), an arm's length party to Mkango, in
connection with the strategic and financial advisory services provided by
Bacchus Capital to the Company for the period from 23 January 2023 to 31 March
2023. The value of the Shares is equivalent to a monthly retainer of US$15,000
(equivalent to C$24,000) and were issued at a deemed price per Share of
C$0.2025, based on the closing price of the common shares of Mkango on 31
March 2023.  Pursuant to the agreement with Bacchus Capital, Shares are
issuable to it on a quarterly basis, based on the closing price of the shares
of Mkango on the last trading day in the applicable quarter. The issuance of
the Shares to Bacchus Capital remains subject to the approval of the TSX-V.

The Shares may not be sold through the facilities of the TSX-V or, absent a
prospectus exemption, otherwise to a resident of Canada until four months and
one day from the date of issue. The issuing of these shares is subject to
TSX-V approval. The Shares will rank pari passu with the existing shares and
application has been made for the Shares to be admitted to trading on AIM
("Admission"). It is expected that Admission will become effective and
dealings in the Shares will commence at 8:00 am on or around 11 May 2023. The
Shares will also trade on the TSX-V. 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 share capital will
consist of 243,430,865 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 FCA's
Disclosure and Transparency Rules.

For further information, please contact:

 

 Mkango Resources Limited                                                         Canada: +1 403 444 5979

 William Dawes

 Chief Executive Officer

 will@mkango.ca (mailto:will@mkango.ca)

 Alexander Lemon

 President

 alex@mkango.ca (mailto:alex@mkango.ca)

 Robert Sewell

 Chief Financial Officer

 rob@mkango.ca (mailto:rob@mkango.ca)

 www.mkango.ca (http://www.mkango.ca)

 @MkangoResources

 Tavistock                                                                        UK: +44 (0) 20 7920 3150

 PR and IR Adviser

 Jos Simson, Cath Drummond

 mkango@tavistock.co.uk (mailto:mkango@tavistock.co.uk)

 SP Angel Corporate Finance LLP                                                   UK: +44 20 3470 0470

 Nominated Adviser and Joint Broker

 Jeff Keating, Kasia Brzozowska

 Alternative Resource Capital                                                     UK: +44 20 7186 9004/5

 Joint Broker

 Alex Wood, Keith Dowsing

 Bacchus Capital Advisers                                                         UK: +44 203 848 1642

 Financial Adviser                                                                UK: +44 7857 857 287

 Richard Allan

 richard.allan@bacchuscapital.co.uk (mailto:richard.allan@bacchuscapital.co.uk)

 

About Mkango

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 listed on the AIM Market of the London Stock Exchange
("AIM") and the Toronto Venture Exchange ("TSX-V").

Mkango is developing its Songwe Hill rare earths project ("Songwe") in Malawi
with a Feasibility Study completed in July 2022 and an Environmental, Social
and Health Impact Assessment approved by the Government of Malawi in January
2023. 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.

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 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, the availability of (or delays in obtaining) financing to
develop Songwe Hill, the Tysley Recycling Plant, the HyProMag GmbH Recycling
Plant, the Mkango UK Pilot Plant, the Pulawy Separation Plant, 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
Maginito's 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 Tysley Recycling Plant, the HyProMag GmbH
Recycling Plant, the Mkango UK Pilot Plant, the Pulawy Separation Plant and
future investments in the United States pursuant to the proposed 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 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.

 

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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