Been a month of news flow from Mkango with Derek Linfield, Chairman of the Company purchased 100,000 and Susan Muir, a non-executive director of the Company, purchased 12,000 Shares. Update on the drill programme in Malawi and new board members.
Share Talk is asking shareholders to submit questions for a written Q&A to be conducted with the management team of Mkango
September 11, 2018, Announce results for a further eight holes from the latest diamond drill programme at the Songwe Hill Rare Earths Project (“Songwe”) in Malawi.
William Dawes, Chief Executive Officer, commented: “We are very pleased to announce another excellent set of results from the recently completed major drill programme at Songwe, which is an integral part of the ongoing Feasibility Study. This is the largest drill programme to date in the history of the project and its successful completion is a great credit to the strong international and Malawian team on the ground. We look forward to announcing results from the remaining 75 drill holes totalling 9,259 m.”
Then on August 29, 2018, announced a restructuring of its board to reflect the increasingly international scope of the Company’s activities.
· Susan Muir has been appointed to the Board as Non-executive Director with immediate effect. Ms Muir is a highly experienced investor relations executive, with over 30 years’ experience in the mining sector and in capital markets. She is based in Toronto and was formerly Vice President, Investor Communications at Barrick Gold Corporation (“Barrick”).
· Sandra du Toit has been appointed to the Board as Non-executive Director with immediate effect. Ms du Toit is a highly experienced investment banker based in Johannesburg and has advised on numerous transactions in the African mining and finance space. She is currently Executive Vice President with Standard Bank.
· Shaun Treacy has been appointed as a consultant to the Company and will be nominated to join the Board as Non-executive Director at the upcoming shareholders meeting of the Company. Mr Treacy is a senior strategic and financial adviser. He is based in Sydney, Australia and is currently Chief Investment Officer for the private equity firm, Arete Capital Partners, and previously held senior investment banking positions with JPMorgan, Lehman Brothers, Nomura and UBS.
Derek Linfield, Chairman, commented: “It’s my pleasure to welcome Sandra, Susan and Shaun to the Board. The appointment of our new directors further broadens the Company’s international footprint and global network, following the Company’s major transaction with Talaxis at the end of 2017.
“The Board is extremely appreciative of the contributions of David and Eugene who, over the last seven years, have played key roles in setting the strategic direction for the growth of the Company, enabling us to reach our current stage of development. The addition of the new Board members will bring complementary skill sets to those of the current Board and positions the Company for its transformation from an exploration company with an African-focused asset base into a development and production company.”
Mkango also announces that it has released the Financial Statements and Management’s Discussion and Analysis for the period ending June 30, 2018. The reports will be available under the Company’s profile on SEDAR (www.sedar.com) and on the Company’s website (http://www.mkango.ca/s/financials.asp).
About Mkango Resources Limited
Mkango‘s primary business is exploration for rare earth elements and associated minerals in the Republic of Malawi, a country whose hospitable people have earned it a reputation as “the warm heart of Africa”. The Company holds interests in three exclusive prospecting licenses in Malawi, the Phalombe licence, the Thambani licence and the Chimimbe Hill licence.
The main exploration target in the Company’s 80%-held Phalombe licence is the Songwe Hill Rare Earths Project, which features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated Pre-Feasibility Study for the project in November 2015 and a feasibility study (the “Feasibility Study”) is currently underway, the initial phases of which include a major drilling programme.
Under the terms of an agreement with Talaxis (the “Talaxis Agreement”), Talaxis agreed to fully fund the Feasibility Study by investing £12 million for a 49% interest in the Songwe Project (via Mkango subsidiary Lancaster Exploration Ltd). Talaxis will also have the option to acquire a further 26% interest by arranging funding for project development, including funding the equity component thereof. If Talaxis exercises its option, Mkango will retain a 25% interest in Songwe, free carried to production. To-date, Talaxis has invested £5 million, which is funding the initial phase of the Feasibility Study, for a 20% interest in the project with Mkango holding 80%.
Talaxis also agreed to invest a further £2 million to acquire a 49% interest in Maginito Ltd (“Maginito”), a new subsidiary of Mkango focused on neodymium alloy powders, magnets and other technologies. This includes the collaboration with Metalysis Ltd announced in September 2017, which is focused on advanced alloys using neodymium or praseodymium with other elements for permanent magnet manufacturing. Permanent magnets are critical materials for most electric vehicles, direct drive wind turbines and many other high growth applications. Neodymium is a key rare earth component at Songwe. To date, Talaxis has invested £1 million for a 24.5% interest in Maginito with Mkango holding 75.5%.
The main exploration targets in Mkango’s remaining two 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon and, in the Chimimbe Hill licence, nickel and cobalt.
For more information, please visit www.mkango.ca.
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