TIDMMKA
RNS Number : 9847S
Mkango Resources Limited
30 December 2016
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
MKANGO RECIEVES REGULATORY APPROVAL FOR NOBLE TRANSACTION AND
CLOSES GBP450,000 PLACING
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES
OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
Calgary, Alberta: December 30, 2016 - Mkango Resources Ltd.
(TSXV / AIM: MKA) (the "Company" or "Mkango"), is pleased to
announce that it has received regulatory approval for its
previously announced agreement (the "Agreement") to collaborate
with Noble Resources International ("Noble") in the rare earths
sector and for the GBP450,000 placing (the "Placing") with existing
shareholders and new institutional investors.
The press release relating to the Agreement can be accessed via
the following link:
http://www.mkango.ca/s/news.asp?ReportID=773885. In connection with
the Agreement, Mkango has issued 12 million common share purchase
warrants ("Warrant") to Noble, aligning Noble's interests with
those of Mkango's shareholders. Each whole Warrant will entitle
Noble to acquire one common share of the Company at a price of 6.6
UK pence until December 30, 2018. The Warrants give Noble the right
to acquire up to a 12.5% interest in Mkango. In connection with the
Agreement and in respect of ongoing advice in the Asian and
Australian markets, Zenith Advisory Services Pty Ltd. has been
issued with warrants to acquire 1.2 million common shares of the
Company on the same terms as those issued to Noble.
Complementary to and on the basis of the Agreement, Mkango
completed a Placing of 12,857,124 common shares at 3.5 UK pence per
common share ("Share") to raise GBP450,000 (GBP430,125 net of
finders' fees). As a result two specialist Swiss mutual funds, the
Rare Earth Elements Fund and the Metals Exploration Fund, each hold
an interest of 3.6% in Mkango.
The main uses of proceeds from the Placing will be to accelerate
the optimisation of the processing flow sheet and evaluation of
product marketing options to facilitate further marketing, offtake
and partnership discussions, as well as to evaluate additional
opportunities and other expenditures.
The Company will pay cash finders' fees totaling GBP19,875 and
issue 567,856 non-transferable finders' warrants ("Finder's
Warrants") in connection with the Placing. Each Finder's Warrant
entitles the holder to acquire one Share for 3.5 UK pence until
December 30, 2017.
The securities issued in connection with the Placing will be
subject to the applicable four month hold periods in Canada, in
accordance with applicable securities laws and the rules of the TSX
Venture Exchange.
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." Mkango holds, through its wholly owned
subsidiary Lancaster Exploration Limited, a 100% interest in two
exclusive prospecting licenses in southern Malawi, the Phalombe
licence and the Thambani licence.
The main exploration target in the Phalombe licence is the
Songwe Hill rare earths' deposit, 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. Mkango's strategy for
Songwe is to further optimise the project with a view to maximising
efficiency and reducing costs, thereby providing a strong platform
for entering into partnerships, marketing and offtake arrangements.
The main exploration targets in the Thambani licence are uranium,
niobium and tantalum. For more information, please visit
www.mkango.ca.
Noble Early Warning Reporting
As a result of the Agreement and the Warrants issued thereunder,
Noble (whose address is 60 Anson Road, #19-01 Mapletree Anson,
Singapore 079914) now owns and controls Warrants exercisable to
acquire 12,000,000 common shares of Mkango, and in the event that
Noble exercises these Warrants, it would have ownership and control
over 12,000,000 common shares of Mkango, representing approximately
12.5% of the common shares of Mkango (post-exercise). The Company
is advised that Noble hold these securities for investment purposes
and has no present intention to acquire further securities of the
Company, although it may in the future acquire or dispose of
securities of the Company, through the market, privately or
otherwise, as circumstance or market conditions warrant. A copy of
the early warning report required to be filed by Noble with
applicable securities commissions in connection with this issuance
of Warrants will be available for viewing under the Company's
profile on SEDAR at www.sedar.com and a copy of the early warning
report may be obtained by contacting Noble via
noble@thisisnoble.com or +65 6305 4888.
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 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, 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. 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
UK: +44 207 3722 744
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
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
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
REATLBITMBBTBMF
(END) Dow Jones Newswires
December 30, 2016 02:00 ET (07:00 GMT)
Mkango Resources (LSE:MKA)
Historical Stock Chart
From Apr 2024 to May 2024
Mkango Resources (LSE:MKA)
Historical Stock Chart
From May 2023 to May 2024