Member Info for flundra

I've been trying to work out what Malawi assets remain in the MKA group after spac completion. Does anyone know?!

I thiiiiink Pulawy and the Phalombe licences (Songwe and Nkalonje) go into the spac. It's not entirely clear though because MKA only mention Songwe and Pulawy as going into the spac. However they also say the company going into the spac is Lancaster Exploration Ltd (BVI) (a 100% owned MKA subsidiary) and that company owns the Phalombe licences which includes Nkalonje according to the management discussion.

I'm not sure which company holds the Thambani (uranium ++) licences or whether they are going into the spac. I've always assumed Thambani will stay in the MKA group though.

Also, have MKA relinquished the Mchinji and Chimimbe licences, does anyone know?

I've not seen an announcement about this, but they're no longer mentioned as projects on the website, and only once in the Sept management discussion document, in the expenditure table which shows no current (indeed only past) expenditure on them. They were on the website until recently, and previous management discussions have also expressly included them under their own headings as ongoing projects. Not this time though.

There was great potential for rutile in Mchinji which is close to Kasiya. Samples were taken and sent for analysis.

No longer part of the plan maybe? Will Mchinji and Chimimbe be sold, relinquished or lapse? Has this happened already?

Looks like US is buying. If this is their response to buying some (Spanish) separation units, what will they make of confirmation of Fort Worth!

Accumulators on for an RNS full house this week?!

Fort Worth confirmation, ii tr1s, more funding, offtakes and supply ags, Tylesley and recycling updates, Pulawy pfs, etc

Please don't make keir aware. It'll get taxed into oblivion by Christmas.

V interesting sitiain. More dots to be joined perhaps. Hypromag will also be having its butt sniffed a lot.

From 3/10/24 RNS:

Aaron Riley, General Manager of Less Common Metals stated: "We are excited to support an additional UK project focussed on advancing the circular economy and building an alternative route for rare earth magnets. As part of the Innovate UK-funded REEmelt project, LCM will collaborate with HyProMag Ltd, ADEY Innovation Ltd, and the University of Birmingham to recycle and remanufacture rare earth magnets from end-of-life sources.

Fantastic, great timing too. Like the best bridging loan ever! This was presumably one of DFC's 2 subsaharan projects being kept under wraps.

40m - 3/7/25 RNS.

Frustrating because the sp's gone from 45p to 34p over the last few weeks, when it might well not have done under my alternative cunning plans!

The £3m raise is water under the bridge and nice to have. But did MKA really need to do a smallish discounted raise, with the attendant sp weakness, forward selling and flipping?

They've been talking about discussions with strategic investors, project and other funders, and offtakers, for years now. How's that going? Hopefully nearly there?

Also, the existing cash seemed sufficient to get to the spac completion, at which point it would have made more sense imo to give up some of the assumed 40m shareholding in MKAR to another investor for cash. Just a little dilution should raise a significant amount of cash.

The bod generally get these calls right though. But here we are back at 34p which is frustrating.

Https://lnkd.in/p/eUhEEwJZ

Will in Toronto next week. Adamas Intelligence RE event.

Might have been me John. Results not known yet, but a 2 horse race between Chakwera and Mutharika. Everything I've read in the mining press indicates both are supportive of mining and Malawi 2063 so whoever wins I'd assume it shouldn't adversely affect MKA.

Good points chaps. I had in mind adjustments on completion where MKA take a smaller shareholding (than the 40m working assumption) for cash where possible, then indeed any share sales thereafter. Could've worded that better.

MKA gets its shareholding in MKAR and a large amount of cash on completion of the spac transaction. That could be as soon as November, and probably not much longer. So the cash raised now should only need to cover outgoings/expenses for a few months at most.

I believe some of us are disappointed that it wasn't reasonably possible or desirable to fund these few months' outgoings from cash and borrowings within the group, income from sales, and tweaking suppliers terms. Instead I think we've seen over the last few weeks what we (rightly or wrongly) think has been forward selling of shares by placees in today's announced raise. The Sp weakness might've been General drift though I guess.

Ultimately though who really cares?! The sp's bounced back and we're sitting pretty now, shareholders in a great company well and truly on track.

There is the AIM stink about this raise, forward selling by placees in the know weakening the sp recently.

But I trust the bod's judgement to raise, even though the quarterlies indicated sufficient cash, albeit with little headroom.

And a very strong position now reflected in the strong sp rebound. Strong balance sheet going into spac transaction completion in c 3 months, with big cash injection into MKA at that point. Govt grants, loans, commercial funding, offtakes to come, alongside project and operations newsflow.

Seems to me that MKA tend to talk to partners, financers, and govts, more than the press. Imo HPMS is on the radar in the right circles for sure. Feels to me like something mega re Hypromag has been brewing for a while.

Buy and be patient imo.

Malawi general election on Tuesday 16 Sept.

https://www.reuters.com/world/africa/key-issues-voters-malawis-2025-elections-2025-09-12/

Https://discoveryalert.com.au/news/rutile-exploration-acquisition-malawi-2025/

To add to earlier discussion re Japan infrastructure funding in Malawi benefitting Kasiya Songwe and Mchinji. MKA's Mchinji rutile project looks increasingly interesting. In Malawi's emerging "rutile province".

Also Kasiya is right next to MKA's Mchinji licence (rutile). Good relevant news indeed.

"East and northeast of the Mchinji licence there are large licences owned by Sovereign Services Ltd and McCourt Mining Ltd, both wholly owned Malawi-registered subsidiaries of Sovereign Metals Ltd, that host Sovereign's Kasiya and Bua rutile projects."

V interesting velcro.

Do we know yet what the 2 subsaharan critical mineral infrastructure projects are, that USIDFC approved? They were announced a few months ago but the projects were being kept confidential at that point.

The US is clearly spreading the net.

Buying opportunity today imo. Everything's nicely on course, how often can you say that about an AIM co rolling out new tech?!

Sufficient cash to cover current liabilities, potentially more cash coming in the short term eg from further warrant exercise and any proceeds from product sales through Hyp (as and when they roll into MKA's coffers).

And the big cash injection into MKA is due within just 4 months with completion of the BCA and spac listing. Also meanwhile all the other funding options continue being progressed in the background.

There isn't anything not to like imo.

I agree we can breathe more easily re the cash position. Always good to have that confirmed.

Cash approx $2m as I read it ($1.2m as at end June + $800k from subsequent warrant exercise). Add a bit for subsequent product sales, then deduct a bit for expenditure since end June. That broadly equates with current liabilities (ignoring derivative liabilities ie warrants). I wouldn't count the note purchase monies which go into the subsidiaries.

Given that Tyseley is on course and cash positive, and Germany and the spac should complete within 3 or 4 months, cash looks fine until then and beyond. In fact all looks rosy to me. Let's hope for a good week next week.