MKANGO RESOURCES LTD.
550 Burrard Street
Suite 2900
Vancouver
BC V6C 0A3
Canada
MKANGO RAISES £2.34M (C$4.11M) TO
ADVANCE RARE EARTH MAGNET RECYCLING IN UK AND
GERMANY
London / Vancouver: January 20, 2025
- Mkango Resources Ltd. (AIM/TSX-V: MKA) is
pleased to announce that it has conditionally raised gross proceeds
of £2.34million (approximately C$4.11 million) through the
issuance, on a private placement basis, of 29,187,500 common shares
of the Company (the "Subscription Shares") at a price per
Subscription Share of 8 pence ("p") (approximately C$0.14) (the
"Issue Price") (the "Subscription").
William Dawes, Chief
Executive of Mkango stated: "We are delighted by the continued support
and confidence from our existing shareholders, reflected in this
£2.34million investment. This funding will enable Mkango to
maintain momentum on achieving commercial production in the UK and
the development of the Germany operation.
Concurrently, we
continue to work towards execution of the proposed Business
Combination Agreement in relation to the previously announced SPAC
transaction, which once executed, is expected to bring us a step
closer to extracting significant value from our Songwe Hill and
Pulawy Rare Earths Projects.
Mkango has conditionally raised
gross proceeds of £2.34million (approximately C$4.11million)
through the issuance, on a private placement basis, of 29,187,500
Subscription Shares at a price per Share of 8p (approximately
C$0.14). The net proceeds of the Subscription after fees is
expected to be £2.22million (approximately C$3.90million). The
issue price equates to a discount of 21% and 20% to the trailing
five-day volume weighted average price ("VWAP") of Mkango's shares
on AIM and TSX-V respectively at the closing prices on 17 January
2025. The Company intends to use the net proceeds of the
Subscription to fund ongoing recycling development costs in Germany
and the UK, and to fund ongoing corporate costs.
The Subscription is expected to
close on or around 31st January, 2025 and is subject to
the receipt of all necessary approvals including the approval of
the TSX-V, and admission of the Subscription Shares to trading on
AIM.
The Subscription Shares will rank
pari passu with the Company's existing shares and application will
be made for the Subscription Shares to be admitted to trading on
AIM ("Admission"). It is expected that Admission will become
effective and dealings in the Subscription Shares will commence at
8:00am on or around 31st January 2025. The Subscription Shares 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
Subscription Shares, and will also be listed for trading on the
TSX-V, provided that approval of such listing from the TSX-V is
obtained.
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 and outstanding share capital will consist of 326,266,261
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 Financial Conduct Authority's Disclosure and
Transparency Rules.
In connection with the Placing,
Mkango has agreed to pay, at completion of the Placing, commissions
of 5% in cash and 5% in non-transferable broker warrants, in each
case with reference to cash raised by each of Jub Capital
Management LLP ("JUB Capital") and Alternative Resource Capital, a
trading name of Shard Capital Partners LLP ("ARC"). In addition,
JUB Capital and ARC will be entitled to a corporate finance fee of
£5,000 (approximately C$8,800) each. The broker warrants will have
a term of 3 years from issue and an exercise price of 8 pence
(approximately C$0.14). The total number of broker warrants to be
issued on completion of the Placing is 1,459,375. Payment of the
commissions (and issuance of the warrants) to the brokers is
subject to acceptance of the TSX-V. The shares issuable pursuant to
exercise of the broker warrants will be subject to a statutory hold
period in Canada expiring on the date that is four (4) months and
one day from issuance of the warrants.
About Mkango
Mkango is listed on the AIM and the TSX-V. Mkango's
corporate strategy is to become a market leader in the production
of recycled rare earth magnets, alloys and oxides, through its
interest in Maginito Limited ("Maginito"), which is owned 79.4 per
cent by Mkango and 20.6 per cent by CoTec, and to develop new
sustainable sources of neodymium, praseodymium, dysprosium and
terbium to supply accelerating demand from electric vehicles, wind
turbines and other clean energy technologies.
Maginito holds a 100 per cent
interest in HyProMag and a 90 per cent direct and indirect interest
(assuming conversion of Maginito's convertible loan) in HyProMag
GmbH, focused on short loop rare earth magnet recycling in the UK
and Germany, respectively, and a 100 per cent interest in Mkango
Rare Earths UK Ltd ("Mkango UK"), focused on long loop rare earth
magnet recycling in the UK via a chemical route.
Maginito and CoTec are also
rolling out HyProMag's recycling technology into the United States
via the 50/50 owned HyProMag USA LLC joint venture company.
Mkango also owns the advanced stage Songwe Hill rare
earths project and an extensive rare earths, uranium, tantalum,
niobium, rutile, nickel and cobalt exploration portfolio in Malawi,
and the Pulawy rare earths separation project in Poland.
For more information, please
visit www.mkango.ca
Market Abuse Regulation (MAR) Disclosure
The information contained within this
announcement is deemed by the Company to constitute inside
information as stipulated under the Market Abuse Regulations
(EU) No. 596/2014 ('MAR') which has been
incorporated into UK law by the European Union (Withdrawal) Act
2018. Upon the publication of this
announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain.
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. Generally, forward looking statements can
be identified by the use of words such as "targeted", "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, receipt of TSX-V approval for the
Subscription, the availability of (or delays in obtaining)
financing to develop Songwe Hill, and the various recycling plants
in the UK, Germany and the US as well as the separation plant in
Poland, 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 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 various recycling
and separation plants of Mkango and Maginito and future investments
in the United States pursuant to the 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 disclaims 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 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
SP Angel
Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Jen Clarke, Devik
Mehta
UK: +44 20 3470 0470
Alternative Resource
Capital
Joint Broker
Alex Wood, Keith Dowsing
UK: +44 20 7186 9004/5
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.
