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@MkangoResources advanced-stage #RareEarth metal development company #MKA a clear path to producing a saleable Mixed Rare Earth Carbonate (MREC), offering the potential for ~18 years of supply of REE at a time of increasingly uncertain supply outlook & strong demand forecasts. https://twitter.com/Share_Talk/status/1606356830614982656?s=20
Superb news
https://www.accesswire.com/732689/Cotec-Holdings-Corp-Announces-Non-Brokered-Private-Placement
CoTec Holdings Corp. (TSXV:CTH) (the "Corporation") is pleased to announce that it intends to complete a non-brokered private placement of up to 20,000,000 units (each, a "Unit") at a price of $0.50 per Unit for gross proceeds of up to $10,000,000
CoTec is an ESG-focused company investing in innovative technologies that have the potential to fundamentally change the way metals and minerals can be extracted and processed for the purpose of applying those technologies to undervalued operating assets and recycling opportunities
The Corporation will use the gross proceeds of the Private Placement to fund pending investment commitments, to repay amounts owing to Kings Chapel (as defined below) and for working capital purposes.
I am unsure how long it takes for the cash to reach Cotecs bank account so there may be a delay with payment tomorrow, but its clear the money is on its way (raising $10m CAD) so no funding issues
All the best for Christmas and the new year!
Malawi is the issue we seem to be victim to some political -issues however the sounds out of there are still positive just need someone to sign a piece of paper!
'He then welcomed investor competition in the development of a mines around all Malawi’s precious minerals, including the recently discovered deposit of more rutile right outside Malawi’s capital than is found anywhere in the world.
Chakwera travelled to the United States on 11 December to attend the Summit from 13 to 15 December. The Malawi leader is expected to return home on 19 December.'
https://malawi24.com/2022/12/16/chakwera-tells-investors-to-support-malawis-atm-strategy/
At least Cotec is moving, and it's moving in the right direction: +18%.
We -or is it Malawi?- seem to be in hibernation......
CoTec news expected this week?
All part of the bigger picture -----
https://www.reuters.com/markets/commodities/canadas-critical-mineral-strategy-aims-accelerate-permitting-2022-12-09/?utm_medium=Social&utm_source=twitter
"Soon".
This is like watching paint dry.
https://www.kulinji.com/article/news/business/2022/mkango-get-rare-earth-mining-licence-soon
Finally! Some positive vibes.
Will be interesting to see if the recovery continues
Notice the end of day accumulations as mentioned over the last few weeks. 2023 will be mkas year.
Sounds as if the AG has gone through the process and passed back to the Government for final sign off?
Todays SP movement was quite remarkable in all honesty, the figures shown do not accurately relate to real time figures and as GLR states, the value here has now flipped considerably into the recycling investment. Todays drop was expected and I expect well researched investors to continue adding. I’m also expecting CoTec to commit further before the year end which in turn will change the cash position considerably.
I’d advise anyone worried about the Malawi commitment to simply Google what the Government there are doing to change the whole system and draw in new investors, they need the cash and they know corruption has to be extinguished to fully get the best from they’re natural resources.
Yes, there was a previous post from malawi government saying it was with the Malawi attorney General for sign off.
It is close. There are also malawi government event collaboration with mka next year. It is not an if but when.
The due diligence is excellent and needs to be as malawi eradicate corruption.
Management discussion doc was for the period to end Sept.
Would I be right in thinking that references to MDA and appointment of an independent, international law firm to review and finalise would have taken place prior to that date?
If so, it could land sooner than expected. If not, then will just have to wait a bit longer.
MDA will come when it has to. Recycling is a game changer. Even if it's 2023 for MDA, I believe there is lot of upside potential. Even if China returns back to normalcy in terms of REE supply , I would still doubt if ROW would like to be reliant on China for REE which makes us very attractive.
I want to reaffirm, I am still completely invested here and believe 100% in the massive potential. I see £1 across the next 12 months, it’s just Malawi Gov who frustrate me.
Morning.
It needed to cool off by a few pence so chill and continue to wait it out IMO.
Continue to drift? It is up 50% since the beginning of November. Long may it continue to drift upward :-)
The market reaction is MMs tree shaking on the bid, miniscule volume. As stated previously I know of x2 PIs with deep pockets who are interested. These guys tend to buy just before the close. Lets see how it goes today.
I wouldn’t say 20,000 net sells (shares not £s) is a particularly negative market reaction but I guess we’ll see how it plays out. Feels like MMs trying to make a market by dropping it first thing.
GLR
Thanks, for your comprehensive post. Yes, of course, the Cotec arrangements do bring some comfort, and they are at a very modest cost. The lights can be kept on for another 6 months or so.
I guess my worry is that any potential partners here can play hardball in these circumstances, tho tbf it's a pretty common situation for smallcap resource cos. But so is seeing those cos screwed over.
Until we get MDA and some clarity over funding I fear SP may continue to drift.
Top of page 5. But the document generally allows for flexibility. Feels like it could easily be New Year to me. I knew the market would respond badly to this, and indeed it has. Still I expect us to hold roughly here though.
Can see some have posted today with little knowledge of the company or the current transactions being discussed
From the last update with Cotec
The parties are currently finalising documentation and, in order to accommodate delayed timelines, CoTec has agreed to advance a further £222,500 (US$250,000) to Mkango by way of a convertible advance note (the "Advance") and Mkango has agreed to extend the exclusivity period to 23rd December 2022
Cotec are finalising a 10% position in Maginito aka HyProMag which is due to be closed by 23rd December 2022, once completed MKA will receive £1.5m / $1.8m USD, which as per todays report, showing cash burn of $1m USD per three months, with existing cash would be sufficient until H2 2023 minimum
Cotec are also providing 'INTERIM FINANCING' to MKA, you can read about it at their latest press release, dated 31/10 where they state 'Mkango Resources Ltd. ("Mkango")
CoTec has entered into a non-binding term sheet for an investment in Mkango and provided interim financing to them. Mkango has two main assets - a rare earth development project in Malawi which, according to a feasibility study that Mkango published in August[1], has a post-tax NPV10% of US$559M and more interestingly to CoTec, an interest in a green process utilizing hydrogen to recycle rare earth magnets and extract the rare earth elements from them. During the quarter, a pilot plant was commissioned in the United Kingdom to scale up the technology. In connection with its investment in Mkango, CoTec and Mkango will enter into a co-operation agreement regarding future investment in rare earth processing technologies in the US. CoTec believes that the Mkango recycling technology will align well with the desire of the US to be strategically independent of China' Link below
https://finance.yahoo.com/news/cotec-holdings-corp-provides-business-214500663.html?guccounter=1&guce_referrer=aHR0cHM6Ly93d3cuZ29vZ2xlLmNvbS8&guce_referrer_sig=AQAAANszg5XAenPJH7THH4YBCk7TZzuzJ4h6DVWW-GydqBbU-KKfJ6Ey7s0ZSCa70Yud3rHwytAExjLIDa214RBlPCFZG8nVx3VAkBB3W4bQWMzoB67_2SJaD1xmFqgyu9HNy_kxhfnIosNUwuHoOTmadggKSvTJXtTzNNc_L08yXaR0
If you are still worried about the cash position then sell up and move on, my concern at the moment is only the MDA and that is backed by the valuation of HyProMag
Risk if Cotec don't provide funding? I would state why are they currently financing us at 27p, they have given us £1.225m to date at 27p (CLN) yet cant finalise the one thing they wanted which is a £1.5m investment in HyProMag, you are talking about the ex CEO of Rio Tinto and Anglo Pacific
Worst case they dont fund us and we keep the 10% interest in Maginito / HyProMag, and keep the £1.225m at 27p already invested
Alternate scenario if they cant pay, they give us another £500K and extend exclusivity a bit further into 2023, but either way we get financing at previous favourable rates
All I read was the MDA is being legally finalised
Yes, Cotec are more important here. People need to relax re MDA, a mine is nice cherry but the recycle aspect is a major plus and relevant today.
The pilots in UK and Poland will be game changers. Grants and finance will flow readily.
Buy in the dip.
and the cash burn has come down substantially in the last quarter.