TIDMMKA
RNS Number : 6432I
Mkango Resources Limited
16 August 2021
MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO PROVIDES UPDATE ON PLACING
London / Vancouver: 16 August, 2021 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce
that further to the Company's announcement of 5 August 2021, it has
now received TSX-V conditional approval for the issuance of
23,007,495 common shares of no par value ("New Shares") at an issue
price of GBP0.24 (approx. C$0.42) per New Share, raising GBP5.52
million (GBP5.29m net of fees) from new and existing investors (the
"Placing").
Subscriptions from related parties, being R esource Early Stage
Opportunities Company ("RESOC") for 1,666,666 New Shares and Derek
Linfield for 2,916,666 New Shares, remain conditional on approval
from shareholders other than RESOC (in respect of its subscription)
and Mr Linfield (in respect of his subscription), which approval
will be sought at the Company's Annual General and Special Meeting
of Shareholders (the "Meeting") to be held on 6 October 2021. An
investor who had previously indicated that it wished to delay its
subscription for 350,000 New Shares until after the Meeting
informed the Company earlier this week that it no longer wished to
delay such subscription.
Accordingly, 18,424,163 New Shares have now been issued pursuant
to the Placing with the remaining 4,583,332 New Shares to be issued
conditional upon shareholder approvals at the Meeting.
In addition to the New Shares, the Company has issued an
aggregate of 344,815 non-transferable warrants to the brokers who
advised in connection with the Placing. Each warrant is exercisable
for a period of 12 months with an exercise price of GBP0.24 per
warrant. The warrants (and the underlying shares) are subject to a
statutory hold period in Canada expiring on the date that is four
months and one day from the issuance of the warrants.
Admission to trading on AIM and Total Voting Rights
Application has been made for the 18,424,163 New Shares, which
will rank pari passu with the existing common shares of no par
value each ("Common Shares") of the Company, to be admitted to
trading on AIM ("Admission"). It is expected that Admission of
18,074,163 of the New Shares will become effective and dealings
will commence at 8:00 a.m. on or around 17 August 2021, and
Admission of the remaining 350,000 New Shares will become effective
and dealings will commence at 8:00 a.m. on or around 18 August
2021.
Following the issue of these New Shares, the total issued share
capital of the Company will consist of 153,949,884 Common Shares.
The Company does not hold any Common Shares in Treasury. Therefore,
the total current voting rights in the Company following Admission
will be 153,949,884 and this figure may be used by shareholders in
the Company as the denominator for the calculations by which they
will determine if they are required to notify their interest in, or
a change in their interest in, the share capital of the Company
under the FCA's Disclosure Guidance and Transparency Rules.
The New Shares will also be listed for trading on the TSX-V and
will be subject to a statutory hold period in Canada expiring on
the date that is four months and one day from issuance of the New
Shares.
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 developing Songwe Hill in Malawi with a Feasibility
Study targeted for completion in Q1 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 recently announced that 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 Separation
Plant will process the purified mixed rare earth carbonate produced
at Songwe.
Through its ownership of Maginito ( 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 25% interest in UK rare
earth (NdFeB) magnet recycler, HyProMag ( 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 discovery, for which assay results are
pending, in addition to the Thambani
uranium-tantalum-niobium-zircon project and Chimimbe nickel-cobalt
project.
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, the Plant and Songwe. 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, Shareholder approval of
the Transaction and the investments by related parties, TSX-V
approval of the Transaction and the Placing, settlement risk with
respect to the Placing, 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 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 Songwe Hill and delays in
obtaining financing or governmental approvals for, and the impact
of environmental and other regulations relating to, Songwe Hill and
the 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 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
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Blytheweigh
Financial Public Relations
Tim Blythe
UK: +44 20 7138 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
Shard Capital Partners LLP
Placing Agent
Damon Heath
UK: +44 20 7186 9952
Bacchus Capital Advisers
Strategic and Financial Adviser
Richard Allan Andrew Krelle
UK: +44 20 3848 1642 UK: +44 79 5636 2903
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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END
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