TIDMMKA TIDMTTM
RNS Number : 3073X
Mkango Resources Limited
29 April 2019
MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO ANNOUNCES US$ 2,000,000 EARN-IN AGREEMENT WITH METALNRG
FOR THE THAMBANI URANIUM LICENSE
London / Vancouver: April 29(th) 2019 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") announces that it has
entered into a Non-Binding Heads of Terms Agreement with MetalNRG
PLC (NEX:MNRG) ("MetalNRG"), whereby MetalNRG will earn up to a 75%
interest in the Thambani Exclusive Prospecting Licence (the
"Thambani Licence") in Malawi, by spending up to US$2,000,000 on
exploration.
The terms of the Non-Binding Heads of Terms Agreement outline
that the parties will enter into a Binding Definitive Agreement
(the "Definitive Agreement") on or before the 30(th) June 2019 that
shall include the following elements:
-- MetalNRG must spend US$500,000 on exploration within the
Thambani Licence within 12 months of the date of the Definitive
Agreement, including a drilling programme totalling approximately
1500 metres (the "Initial Workplan"). The details of the Initial
Workplan will be determined in conjunction with Mkango. The
completion of this Initial Workplan shall entitle MetalNRG to a 25%
economic interest in the Thambani Licence, with such interest
limited to uranium only.
-- After the completion of the Initial Workplan, MetalNRG may
elect to further explore and develop the Thambani License by
spending US$700,000 over the subsequent 12 months (the "Second
Workplan"). The completion of the Second Workplan shall entitle
MetalNRG to a 49% economic interest in the Thambani Licence,
limited to uranium.
-- Following the completion of the Second Workplan, MetalNRG may
elect to further explore and develop the Thambani License by
spending US$800,000 over the subsequent 12 months (the "Third
Workplan"). The completion of the Third Workplan shall entitle
MetalNRG to a 75% economic interest in the Thambani Licence,
limited to uranium.
-- Mkango to have right of first refusal on 100% of the offtake for uranium and other minerals.
-- If, following MetalNRG's initial expenditure of US$500,000
and the completion of the Initial Workplan, MetalNRG is not
satisfied with the exploration results produced during the first 12
months, it may elect, at its sole discretion, to discontinue future
funding of the Second and Third Workplans, but it will retain a 25%
economic interest in the uranium assets and operations which are
the subject of the Thambani Licence. Subject to MetalNRG electing
to discontinue future funding of the Second and Third Workplans,
Mkango shall have the right to seek third party investment in order
to raise sufficient capital to develop further the exploration area
covered by the Thambani Licence. MetalNRG's 25% economic interest
will be diluted down when further exploration / development
expenditure is made by Mkango or a third party.
Alexander Lemon, President of Mkango Resources, said: "This
transaction is another milestone for Mkango and for Malawi, and is
further endorsement of the Company's strategy and potential. With
MetalNRG funding the Thambani uranium project and the previously
announced transaction with Talaxis funding Mkango's Songwe Hill
rare earths project, Mkango shareholders can look forward to an
exciting year of news flow and progress in two of the market's most
strategic commodities at present. We are pleased to be working with
MetalNRG, and look forward to a new drilling program being carried
out at Thambani."
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 51% held Phalombe licence is
the Songwe Hill rare earths deposit. This 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 included a 10,900 metre drilling programme and updated
mineral resource estimate.
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 the global market for products using the rare earth
metals the Company is exploring for, completion of the feasibility
study and of the transactions contemplated in the agreement with
Talaxis, as well as the use of proceeds from the investments into
the Company by Talaxis and the timing of such expenditures. 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 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
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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