RE: m k a30 May 2022 11:43
InvestEgate
https://www.investegate.co.uk/mkango-resources-ltd--mka-/rns/mkango-and-cotec-to-collaborate/202205300700081625N/
Highlights
Mkango has signed a non-binding term sheet with CoTec Holdings Corp. ("CoTec"), an ESG-focused company investing in innovative technologies, led by Julian Treger and Braam Jonker, in relation to investments by CoTec into Mkango and Mkango's subsidiary, Maginito Limited ("Maginito"), and collaboration in downstream rare earth technologies (the "Transactions"). The Transactions are expected to include the following key components:
o CoTec will invest £2 million (C$3.2 million) into Mkango by way of a two-year, unsecured convertible note ("Mkango Note") with 5% interest, convertible into Mkango shares at 27p each, providing Mkango with additional working capital as it advances financing discussions for the Songwe Hill rare earths project ("Songwe") in Malawi and the Pulawy separation plant project in Poland
o CoTec will also invest £1.5 million (C$2.4 million) into Maginito, equating to a 10% equity stake in Maginito for the purposes of strategic investments in downstream rare earth technologies and working capital
o Restructuring resulting in Mkango's wholly owned subsidiary, Mkango Rare Earths UK Limited, ("Mkango UK") becoming a wholly owned subsidiary of Maginito
o In consideration of a four-month exclusivity period, CoTec will advance £500,000 (C$805,000), no later than June 20, 2022 (the "Advance"), offsetable against and carrying largely the same terms as the Mkango Note
o Mkango and CoTec will enter into a co-operation agreement regarding future investments in rare earth processing technology opportunities in the United States
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