RE: Monster in the making!5 Aug 2021 14:32
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Strong market backdrop with accelerating demand for rare earths permanent magnets and increased focus on security of supply and recycling of rare earths
London / Vancouver: 5 August, 2021 - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce that Mkango and Talaxis Limited ("Talaxis"), a subsidiary of Noble Group, have entered into an agreement (the "Agreement") whereby Mkango will acquire Talaxis' 49% interest in Lancaster Exploration Limited ("Lancaster"), which owns the Songwe Hill Rare Earths Project in Malawi ("Songwe Hill"), and Talaxis' 24.5% interest in Maginito Limited ("Maginito"), which holds a 25% interest in rare earths magnet recycler HyProMag Limited ("HyProMag"), for 54,166,666 Mkango shares (the "Transaction"), equivalent to £13m at the Placing Price (as defined below).
Complementary to the Transaction, Mkango has conditionally raised £5.52m (£5.29m net of fees) (the "Placing") from new and existing shareholders at a price of £0.24 (approx. C$0.42) per share (the "Placing Price"), including a proposed £700,000 investment by Non-Executive Chairman Derek Linfield.
Completion of the Placing and Transaction are subject to customary closing conditions and the approval of the TSX Venture Exchange ("TSX-V"). Completion of the Transaction and the investments proposed by Mr Linfield and Resource Early Stage Opportunities Company ("RESOC"), another related party proposing to participate in the Placing, are also subject to the approval of the independent shareholders of the Company. One additional investor has also made its participation in the Placing conditional on shareholder approval of the Transaction. Mkango has scheduled its Annual General and Special Meeting of Shareholders (the "Meeting") to approve, amongst other things, the Transaction and the investments by Mr Linfield and RESOC, on 6 October 2021. See "Related Party Transaction, Control Person Approvals and Other Regulatory Matters" below for further discussion.
On completion of the Transaction, Mkango will own 100% of Lancaster and Maginito, in addition to its existing wholly owned interests in Mkango Polska (which is developing a rare earth separation plant in Poland) and three other exploration licences in Malawi, which includes the exciting Mchinji exploration project.
https://www.investegate.co.uk/mkango-resources-ltd--mka-/rns/mkango-to-acquire-100--of-songwe-and-maginito/202108050700056764H/
The Transaction is expected to bring significant benefits to the Mkango group, including:
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