{"id":116453,"title":"Mkango Closes £1.25M (C$2.19M) Private Placement","publisher":"Share Talk","author":"sharetalk","published":"2024-09-05T07:09:16+00:00","modified":"2024-09-05T07:09:16+00:00","canonical_url":"https://www.share-talk.com/mkango-closes-1-25m-c2-19m-private-placement/","markdown_url":"https://www.share-talk.com/mkango-closes-1-25m-c2-19m-private-placement.md","json_url":"https://www.share-talk.com/mkango-closes-1-25m-c2-19m-private-placement.json","category":"Mining","categories":["Mining"],"tags":["Africa","Alexander Lemon","anaesthetic machine","base metals","Blantyre","CapeTown","Cobalt","Dr Paul Armitage","drilling","ERMA","Gold","Graphite","hand-auger","Leon Louw","Lithium","Maginito","Malawi","Mercy James Centre","MiningIndaba","MKA","Mkango","mkango resources","Nickel","NobleGroup","Poland","Queen Elizabeth Central Hospital","Rare Earth Magnets","RareEarths","Recycled","REE","rutile","Songwe Hil","Talaxis","TSX Venture Exchange","URANIUM","William Dawes"],"featured_image":"https://i0.wp.com/www.share-talk.com/wp-content/uploads/2023/11/MKA-30-NOV-23.jpg?fit=1200%2C800&quality=89&ssl=1","format":"news","language":"en-GB","content":"London / Vancouver: September 5, 2024 – **Mkango Resources Ltd. (AIM/TSX-V: MKA)** is pleased to announce that further to the Company’s announcement of August 21, 2024, it has closed a private placement to raise gross proceeds of £1,250,000 (approximately C$2.2 million) through the issuance of 25,000,000 common shares of the Company (the “Subscription Shares”) at a price per Subscription Share of 5 pence (“p”) (approximately C$0.088) (the “Subscription”).\n\nAccordingly, 25,000,000 Subscription Shares have now been issued pursuant to the private placement. The Subscription Shares are subject to a statutory hold period in Canada expiring on January 5, 2025.\n\nFurthermore 25,000,000 warrants (“Warrants”) (one Warrant for each Subscription Share) have been issued. Each Warrant will entitle the holder to acquire one common share at a price of £0.07 per common share (“Mkango Share”) for a period of 3 years following the closing of the Subscription (i.e. up until September 4, 2027).\n\nIn addition to the Subscription Shares and Warrants, the Company has issued an aggregate of 1,250,000 warrants (“Broker Warrants”) to Jub Capital Management LLP (“Jub Capital”). Each Broker Warrant is exercisable for a period of three years with an exercise price of 5p per Broker Warrant. The Warrants and Broker Warrants (and the underlying shares) are subject to a statutory hold period in Canada expiring on January 5, 2025.\n\nThe net proceeds of the Subscription, after fees, is £1,187,500 (approximately C$2.1 million). The Company intends to use the net proceeds of the Subscription to acquire additional equipment for the 2025 commercial development of rare earth magnet recycling operations at Tyseley Energy Park in Birmingham, UK and at Pforzheim, Germany, by HyProMag Limited and HyProMag GmbH, in addition to working capital.\n\n**Admission to trading on AIM and Total Voting Rights**\n\nThe Subscription Shares will rank pari passu with the Company’s existing shares and application has been made for the Subscription Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings in the Subscription Shares will commence at 8:00am today, on 5th September, 2024.\n\nIn accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market that immediately following Admission of the Subscription Shares, its issued and outstanding share capital will consist of 293,453,574 shares. The Company does not hold any shares in treasury. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority’s Disclosure and Transparency Rules.\n\nThe Subscription Shares will also be listed for trading on the TSX-V and will be subject to a statutory hold period in Canada expiring on January 5, 2025.\n\n**About Mkango Resources Ltd**.\n\nMkango is listed on the AIM and the TSX-V. Mkango’s corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys and oxides, through its interest in Maginito Limited (“Maginito”), which is owned 79.4 per cent by Mkango and 20.6 per cent by CoTec, and to develop new sustainable sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean energy technologies.\n\nMaginito holds a 100 per cent interest in HyProMag and a 90 per cent direct and indirect interest (assuming conversion of Maginito’s convertible loan) in HyProMag GmbH, focused on short loop rare earth magnet recycling in the UK and Germany, respectively, and a 100 per cent interest in Mkango Rare Earths UK Ltd (“Mkango UK”), focused on long loop rare earth magnet recycling in the UK via a chemical route.\n\nMaginito and CoTec are also rolling out HyProMag’s recycling technology into the United States via the 50/50 owned HyProMag USA LLC joint venture company. HyProMag is also evaluating other jurisdictions, and recently launched a collaboration with Envipro on rare earth magnet recycling in Japan.\n\nMkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium, tantalum, niobium, rutile, nickel and cobalt exploration portfolio in Malawi, and the Pulawy rare earths separation project in Poland.\n\nFor more information, please visit [www.mkango.ca](http://www.mkango.ca)\n\nFor further information on Mkango, please contact:\n\nMkango Resources Limited\n\nWilliam Dawes\n\nChief Executive Officer\n\n[will@mkango.ca](mailto:will@mkango.ca)\n\nCanada: +1 403 444 5979\n\nwww.mkango.ca\n\n@MkangoResources\n\nAlexander Lemon\n\nPresident\n\n[alex@mkango.ca](mailto:alex@mkango.ca)"}