{"id":113715,"title":"Mkango Resources (AIM/TSX-V: MKA) Closes £750,000 (C$1.3M) Private Placement","publisher":"Share Talk","author":"sharetalk","published":"2024-04-11T06:58:13+00:00","modified":"2024-04-11T06:58:13+00:00","canonical_url":"https://www.share-talk.com/mkango-resources-aim-tsx-v-mka-closes-750000-c1-3m-private-placement/","markdown_url":"https://www.share-talk.com/mkango-resources-aim-tsx-v-mka-closes-750000-c1-3m-private-placement.md","json_url":"https://www.share-talk.com/mkango-resources-aim-tsx-v-mka-closes-750000-c1-3m-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/2024/04/F50TAxwWcAAQ28R.webp?fit=1200%2C800&quality=80&ssl=1","format":"news","language":"en-GB","content":"**Mkango Resources Ltd. (AIM/TSX-V: MKA)** is pleased to announce that further to the Company’s announcement of March 25, 2024, it has closed a private placement to raise gross proceeds of £750,000 (approximately C$1.3 million) through the issuance of 15,000,000 common shares of the Company (the “Subscription Shares”) at a price per Subscription Share of 5 pence (“p”) (approximately C$0.086) (the “Subscription”).\n\n**Highlights**\n\n·   Mkango Resources (“Mkango” or the “Company”) has closed the previously announced £750,000 (C$1.3M) private placement, including a £150,000 investment by Mkango CEO William Dawes\n\n·    Use of proceeds include the acquisition of additional equipment to underpin HyProMag’s transition to first commercial sales of recycled NdFeB at Tyseley Energy Park in Birmingham, UK targeted for H2 2024, and orders of long lead time equipment in Germany, unlocking additional grant funding\n\n·    Discussions are ongoing with potential strategic investors, project finance providers, grant funding bodies and other sources to finance recycling scale-up opportunities and further technology roll-out\n\n·     The Company has completed a significant cost cutting exercise in recent months, whilst streamlining operations to focus on recycling, which has enabled a significant reduction in the ongoing capital requirements for the business\n\n·     Mkango has launched a review of strategic options for its advanced stage Songwe Hill Rare Earth Project in Malawi and Pulawy Rare Earth Separation Project in Poland\n\nAccordingly, 15,000,000 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 August 13, 2024. In addition to the Subscription Shares, the Company has issued an aggregate of 600,000 warrants to Jub Capital Management LLP (“Jub Capital”). Each warrant is exercisable for a period of three years with an exercise price of 5p per warrant.  The warrants (and the underlying shares) are subject to a statutory hold period in Canada expiring on August 12, 2024.\n\nThe net proceeds of the Subscription, after fees, is £720,000 (approximately C$1.2 million). The Company intends to use the net proceeds of the Subscription to acquire additional equipment for the UK recycling business to underpin HyProMag’s transition to first commercial sales of recycled NdFeB in the UK targeted for H2 2024, orders of long lead time equipment in Germany, and to fund ongoing recycling and corporate costs.\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, on 12th April, 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 268,453,574 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 August 13, 2024.\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.\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. Discussions with the Government of Malawi in relation to the Mining Development Agreement for Songwe Hill are ongoing.\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\n**William Dawes  **                             **Alexander Lemon**\n\nChief Executive Officer                  President\n\n[will@mkango.ca     ](mailto:will@mkango.ca)                        [alex@mkango.ca](mailto:alex@mkango.ca)\n\nCanada: +1 403 444 5979\n\n[www.mkango.ca  ](http://www.mkango.ca/)\n\n[@MkangoResources](https://twitter.com/MkangoResources)"}