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Well known China are their friends.
Agree and its not like they can blame it on the carpet as it was successfully found
...what's going on behind the scenes.
Is it individual politicians holding out for bribes or a cheap entry point or is the Malawian ministry insisting on such onerous terms that Mkango cannot possibly consent?
In an earlier interview, Director of Mining Samuel Sakhuta said there are a number of projects expected to commence soon, which will contribute to the growth.
https://www.businessmalawi.com/mining-sector-to-grow-by-5-8-the-times-group/
Thanks Bonker99, an informative article. I didn’t realise there were so many to tap into. Let’s hope we get some good news soon
My understanding is that the "few" outstanding MDA points under negotiation are still fx, foreign accounts and royalties. Below are the main provisions re those points Globe got in March. We're rather caught in the middle and suffering as MKA shareholders, and Malawi are risking being seen as uninvestable by delaying. Definitely time for a breakthrough from everyone's p.o.v.
It'll be hard to depart radically from what Globe got despite talk of changing the law around fx, and there'll be devil in the detail. But they've surely had time enough to sort it all now.
The good news imo is that MKA's MDA is the last big piece in our jigsaw so things should move quickly when we get it. Globe's was an early piece in theirs, before much of the feasibility work, and project funding.
• Globe is required to comply with all applicable foreign currency laws but is permitted to maintain
one or more foreign currency accounts outside of Malawi to meet its foreign currency obligations to
the initial Project Lender for a period of 7 years after the establishment of the relevant account or
the date on which the Company has discharged all its obligations to the initial Project Lender. These
obligations include (but are not limited to) the payment of interest and principal to the Project
Lender, the payment of mandatory pre-payments to the Project Lender, and the establishment and
maintenance of reserves as required by the Project Lender.
• The Malawi Government is to receive, at no cost, a non-diluting 10% equity interest in the Project,
with an option to acquire up to a further 10% equity interest (Equity Option) upon completion of
the construction, commissioning, and start-up of operations at the Project as approved by the
Project Lender. The Equity Option is a fully contributory interest and is capable of being diluted if
the Government does not meet any call by Globe for additional equity funding.
• The Malawi Government will receive a statutory royalty of 5% of all revenue earned from the mining
and processing of ore at the Project. The Kanyika community will receive a royalty of 0.45% as
prescribed under the Act.
Key Targets for 2024:
Completion of the HyProMag USA Feasibility Study
Engage with US Government to secure potential grant funding for HyProMag USA.
Microsoft's Edge browser warns that Baidu's website has been reported as unsafe, raising questions about whether two big tech companies are at war in the Chinese market.
Both parties have responded that they are currently unaware of the situation
There's, literally, billions of Pounds of funding available in the UK and the rare earths recycling tech ticks all the boxes re ESG, innovation, technology and local jobs support.
https://www.twobirds.com/en/insights/2023/uk/what-is-the-uks-critical-minerals-strategy-and-how-does-it-compare#:~:text=The%20UK%20Critical%20Minerals%20Strategy,industry%20now%20and%20in%20future%E2%80%9D.
I'd certainly think Mkango will be looking at various funding /partnership options, not just an 'X'p dilutive raising but I'm sure we will get to know soonish
'Innovate UK, part of UK Research and Innovation, will invest up to £4 million in innovation projects as part of the CLIMATES programme. Your project must be focused on circular critical materials supply chains.
The aim of this competition is to stimulate growth in a circular critical materials supply chain for rare earth elements (REEs), or alternative materials. Your collaborative innovation project will address opportunities across the whole value chain and help increase supply chain resilience. Rare earth elements (REEs) are seventeen chemical elements in the periodic table, the fifteen Lanthanides (elements 57-71 inclusive) plus Scandium and Yttrium.
This competition is split into 2 strands:
Strand 1 is for early-stage feasibility studies (costing up to £250k). These projects will facilitate the adoption of new innovations in processes, technologies or services by industry, to grow a more resilient UK supply chain for REEs.
Strand 2 is for mid and late-stage research and development (R&D) projects (costing up to £700k). These projects will accelerate the industrialisation and commercialisation of innovative processes, technologies and services, to grow a more resilient UK supply chain for REEs.
It is your responsibility to ensure you submit your application to the correct strand for your project. You will not be able to transfer your application and it will not be sent for assessment if it is out of scope.
To keep in touch with updates on the CLIMATES programme,'
https://iuk.ktn-uk.org/opportunities/climates-supply-chain-innovations-for-rare-earths/
Well said bonker99.
Discussion is all good - I raised the prospect of a placing myself last week - that's not the issue, claiming you know it's happening and what the price is becomes an issue for the FCA if you knowingly spread BS like that on a public forum - I hope you have a good VPN son.
Interesting to see that my last couple posts have gone!!
Wonder why folks couldn't see them :)
Can see you are in charge in here and no space for real discussion.
Leave you to it
We also see pro ghouls rocking up from nowhere with tales of doom at rock bottom over and over in the market too.
I own half of the low 7s buys you've seen this week but none of today's buys are mine and there's £60k worth so far - as likely as not that's you/your boss of course.
If it drops a penny or so on a discounted placement - they're as likely to land a govt loan IMO - then so be it, it's no biggy.
I don't think it's right for me to tell people to sell, people have to make thier choices.
I can only highlight that they need funds and I believe it's being arranged and an opportunity to buy lower usually comes when funding is done.
We see this over and over in the market.
Why hold if you can get lower in a few days?
Surely it would be better to sell now at 8p and buy them back, which going by your suggestion, is going to be sub 6p?
You told everyone yesterday who had the chance to buy at 7p to hold off and wait for sub 6p, the ask is now above 8p so hopefully for your sake it is sub 6p or you've cost people a lot of equity.
Maybe it would be better to hold off the price predictions for now and simply state that it might be better to just wait for whatever the placing price is before investing?
God Bless HyProMag that's all I can say here, can you imagine if it were still a £500K 41% interest after-thought?
We would be struggling to hold 4p never mind 8p
Uranium has just completed a 4-year 5x.
With Neodymium doing similar from the current suppressed price on the back of China pulling up the drawbridge (arguably inevitable) then the lowball here, on the mine alone, is c40p.
It's not beyond the realms of possibility that the clean Rare Earths output from recycling could multiply that price with the ducks lining up - I wouldn't be here otherwise.
A £20m mcap is an extremely low starting point for a company with assets like these - the mine PLUS the recycling tech PLUS the EU practically screaming at everyone that it's going to be a/the hot sector over the coming year(s).
A cracking investment IMO.
The issue is that with time ticking on, every fund raise and dilution is putting a ceiling on gains. At 5p - £1 was very much in reach . I now think that is a stretch - In the next 5 years anyway.
All noobs are welcome - great timing for them - I stopped sweating my average on genuine investments a long time ago, 7p, 10p, who cares, if you're in within 30% of the bottom then you're likely to do very well for yourself.
Sudden bit of interest - but still a pitiful price. Gutting newbies are getting in at this level when I imagine we are all averaging a lot higher thn this!
More lambs to the slaughter ;)
Ball is mainly in Malawi's court imo. I don't think MKA can do or say much more atm. Lotus give frequent updates but only ever to say they're still at it and the indicative timeframes have all proved unrealistic. I think we just have to keep pushing but must also wait whilst a developing nation gets its act together.
Principal MDA issues for MKA's MDA are royalties, fx and the extent to which proceeds have to go to foreign or domestic bank a/cs. MKA's hands are largely tied as funders requirements are paramount.
Re Globe, Malawi gets a 10% free equity stake and 5%/0.45% central/local royalty.