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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.
Isn't Cotec the cunning plan?
Please excuse my ignorance but where does it say November? The Management Discussion and Analysis document that Mkango published today says: "Discussions are ongoing with the Malawi Government regarding the Mining Development Agreement. The Malawi Government have appointed an independent, international law firm to review and finalise the Mining Development Agreement."
Very low. Hope they've got a cunning plan, ....
Bloody frustrating. Says November still but it’s December tomorrow. Who know when they’ll have a brown paper envelope big enough to make them actually sign. Starting to doubt Malawi’s “warm heart”.
The key is they are doing it properly. Low cash burn mode with MDA imminent. Looking extremely good. So much potential
Seems the delay is in the hands of the Government, although others are optimistic it’ll happen soon.
https://www.asx.com.au/asxpdf/20221101/pdf/45h2wtk0q1d9q9.pdf
Chinese supply chain issues can only help here. Producers need alternative REE sources today. Malawi can surly see that too and cannot wait much longer for the ESG driven tax revenues.
I also know at least x2 larger PIs who are looking to buy into this on weakness, I don't think they will get the quantities or near to them at under 20p soon. 17p will feel a bargain.
well, the good news is that the crazy selling that crashed the share price a few weeks ago seems to be over. the bad news is that nobody seems willing to pay 17p right now. more waiting...... and there has already been plenty of that
An excellent video showcasing the hypromag investment.
https://youtu.be/9P-dsNCffWw
24/11/22
https://www.mining-technology.com/news/hypromag-rare-earth-germany/
This is all part of a huge corruption campaign to clean up the tendering systems ready for making new commitments to the West. In fact it should prove to make investors more comfortable knowing corruption due diligence is being taken seriously.
https://www.bbc.co.uk/news/world-africa-63754227
Hopefully, doesn't impact us
Let's not forget the 40% ownership of Hypromag who are flying in their own right
And rightfully so. We know the guys are out in Malawi rubbing shoulders with the elite, this flies on MDA and funding news.
Starting to cook on low volume. About time.
Let’s hope so. Fingers crossed.
https://www.share-talk.com/mkango-resources-ltd-aimmka-granted-fund-hypromag-project/
Newsflow all positive, mining agreement a formality and love the due diligence from both sides to get it right first time.
Multiple strings to the bow. Darling of 2023 this one in my view. X3 from here easily.
Morning.
Really fab news - the money/ball is starting to roll - hold for the 4x from here.