Mkango Resources Limited has announced a proposed equity fundraising targeting approximately £10 million, as the company positions itself to accelerate growth across its UK and European operations.
The capital raise will be executed through a combination of placing, private placement, retail offer, and direct subscription, with new common shares issued at 33 pence each. Trading in the company’s shares on the TSX Venture Exchange has been temporarily halted and is expected to resume on 1 April 2026.
Proceeds from the fundraising are earmarked to support several strategic initiatives, including a potential acquisition in Germany, capital expenditure across both UK and German assets, and broader general corporate purposes.
Mkango also provided forward-looking operational metrics for 2027, indicating projected average selling prices in the range of $55–70 per kilogram, with associated production costs estimated between $22.3 and $36 per kilogram. These figures suggest a potentially robust margin profile, contingent on market conditions and execution.
William Dawes, CEO, commented:
“With strong foundations already in place, this Fundraise marks a significant step forward in delivering our strategy to scale rare earth magnet making across our plants in the UK and Germany.
We are uniquely positioned to capitalise on growing demand for sustainable, secure supplies of rare earth magnets and this funding strengthens our ability to execute on that opportunity. We look forward to delivering long-term value for shareholders while supporting the global energy transition.”
Rationale for the Fundraise
Background
The Fundraise is intended to accelerate the execution of Mkango’s rare earth magnet recycling strategy across the UK and Germany, positioning the Company at the forefront of a rapidly growing and strategically critical market.
The Fundraise strengthens the Company’s balance sheet and positions Mkango to capitalise on increasing demand for sustainable, secure supply of rare earth magnets which is being driven by the demand from data centres, electric vehicles, renewable energy and supply chain security priorities.
Intended Use of Proceeds
The Company intends to utilise the net proceeds of the Fundraise as set out below to support its growth opportunities (a potential acquisition in Germany); for capital expenditure requirements at its UK and German operations (including the required feasibility studies on the expansion of both of those plants); and working capital.
|
Description of intended use of available funds |
Expected expenditure |
|
Acquisition of synergistic German magnet business |
£4,330,000 (C$7,956,375) |
|
Capital expenditure requirements of the German operations |
£2,700,000 (C$4,961,250) |
|
Capital expenditure requirements of the UK operations |
£950,000 (C$1,745,625) |
|
Working capital |
£2,020,000 (C$3,711,750) |
Contacts:
Mkango Resources Ltd
William Dawes
Chief Executive Officer
will@mkango.ca
Alexander Lemon
President
alex@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
