Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”) is pleased announce that shareholders have approved the entering into and completion of the previously announced investment transaction with Talaxis Limited (“Talaxis”) on a disinterested basis (after excluding any votes represented by shares held by Talaxis) at its annual and special meeting of shareholders held in Toronto today (the “Meeting”).
Subject to final TSX Venture Exchange approval, it is anticipated that investments of £5 million (comprising £2 million paid out of escrow and £3 million from Talaxis) will be received by Mkango’s subsidiary, Lancaster Exploration Limited, and £1 million will be received by Mkango’s new subsidiary, Maginito Limited, on or around January 24, 2018.
All other business put forth at the Meeting was also approved by shareholders of the Company, including:
– Re-election of Derek Linfield, William Dawes, Alexander Lemon, David Berg, Eugene Chen and Adrian Reynolds as Directors of the Company;
– Re-appointment of Meyers Norris Penny LLP as auditors of the Company; and
– Approval of the Company’s stock option plan in accordance with the policies of the TSX Venture Exchange.
About Mkango Resources Limited
Mkango’s primary business is the 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 three exclusive prospecting licenses in Malawi, the Phalombe licence, the Thambani licence and the Chimimbe Hill licence.
The main exploration target in the Phalombe licence is the Songwe Hill rare earths’ deposit, 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.
In November 2017, Mkango entered into an agreement with Talaxis, a wholly owned subsidiary of Noble Group Limited, whereby, subject to regulatory approval, Talaxis will fully fund a feasibility study for Songwe by investing £12 million (C$20 million) for a 49% interest in the project. Talaxis will also have the option to acquire a further 26% interest in the project by arranging funding for project development.
In addition, by investing a further £2 million (C$3.3 million), Talaxis will acquire a 49% interest in Maginito Limited, a new subsidiary of Mkango focused on neodymium alloy powders, magnet 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. Talaxis and Mkango have also agreed to cooperate as preferred partners on rare earths projects worldwide and on other projects in Malawi.
The main exploration targets of Mkango’s remaining two 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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