TIDMMKA
RNS Number : 0000B
Mkango Resources Limited
17 September 2018
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
September 17(th) , 2018
Mkango Announces Exercise of Warrants
London / Calgary: September 17, 2018 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") announces that
following the exercise of warrants over 50,000 common shares
without par value in the share capital of the Company ("New
Shares") at an exercise price of 6.6 pence each, it has received an
aggregate consideration of GBP3,300.00.
The New Shares will rank pari passu with the existing shares and
application has been made for the New Shares to be admitted to
trading on AIM ("Admission"). It is expected that Admission will
become effective and dealings in the New Shares will commence at
8:00a.m. on or around 21 September 2018. The New Shares will also
trade on the Toronto Venture Exchange.
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 109,204,600 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.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement may have been
deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
About Mkango Resources Limited
Mkango's primary business is 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". The Company holds interests in three exclusive prospecting
licenses in Malawi, the Phalombe licence, the Thambani licence and
the Chimimbe Hill licence.
The main exploration target in the 80% held 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 and a
Feasibility Study is currently underway, the initial phases of
which include the recently completed 10,891 metre drilling
programme.
Under the terms of an agreement with Talaxis, Talaxis will fully
fund the Feasibility Study for Songwe by investing GBP12 million
for a 49% interest in the project (via Mkango subsidiary Lancaster
Exploration Ltd). Talaxis will also have the option to acquire a
further 26% interest by arranging funding for project development
including funding the equity component thereof. If Talaxis
exercises its option, Mkango will retain a 25% interest, free
carried to production. To-date, Talaxis has invested GBP5 million,
which is funding the initial phase of the Feasibility Study, for a
20% interest in the project with Mkango holding 80%.
By investing a further GBP2 million, Talaxis will acquire a 49%
interest in Maginito Ltd, a new subsidiary of Mkango focused on
neodymium alloy powders, magnets and other technologies. This
includes the collaboration with Metalysis Ltd announced in
September 2017, which is focused on advanced alloys using neodymium
or praseodymium with other elements for permanent magnet
manufacturing. Permanent magnets are critical materials for most
electric vehicles, direct drive wind turbines and many other high
growth applications. Neodymium is a key rare earth component at
Songwe. To date, Talaxis has invested GBP1 million for a 24.5%
interest in Maginito with Mkango holding 75.5%.
The main exploration targets in Mkango's remaining two 100% held
licences are, in the Thambani licence, uranium, niobium, tantalum
and zircon and, in the Chimimbe Hill licence, nickel and
cobalt.
For more information, please visit 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, its business and the Project. Generally, forward
looking statements can be identified by the use of words such as
"plans", "expects" or "is expected", "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. Forward
looking statements in this news release include statements with
respect to: Songwe; the Feasibility Study; and the Talaxis
Agreement.. 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, market demand for the
metals and associated downstream products for which Mkango is
exploring, researching and developing, the positive results of a
feasibility study on the Project, delays in obtaining financing or
governmental or stock exchange approvals. 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 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
Chief Executive Officer
will@mkango.ca
UK: +44 207 3722 744
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Alexander Lemon
President
alex@mkango.ca
Blytheweigh
Financial Public Relations
Tim Blythe, Camilla Horsfall, Julia Tilley
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, Rob Collins
UK: +44 20 7186 9004; +44 20 7186 9001
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 news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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