Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”), the rare earths development company currently completing a Feasibility Study for the advanced stage Songwe Hill project in Malawi, announces the exercise of warrants over 17,226,210 common shares without par value in the share capital of the Company (“New Shares”) at an exercise price of 6.6 pence each, for an aggregate consideration of £1,136,930.
This includes 3,333,333 warrants exercised by Derek Linfield, Chairman of the Company, following which he will hold a beneficial interest in 5,139,561 Shares, representing approximately 3.9 per cent. of the Company’s issued share capital.
The New Shares will rank pari passu with the existing shares and application has been made for the New Shares to be admitted to trading on AIM (“Admission”). It is expected that Admission will become effective and dealings in the New Shares will commence at 8:00am on or around June 20, 2019. The New Shares will also trade on the Toronto Venture Exchange.
In accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R) the Company hereby notifies the market that immediately following Admission, its issued share capital will consist of 133,000,721 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 FCA’s Disclosure and Transparency Rules.
Following exercise of the above warrants, the only warrants now outstanding are 12,000,000 held by Mkango’s strategic partner, Talaxis Limited (“Talaxis”), a subsidiary of Noble Group, and 1,200,000 held by Mr Shaun Treacy, a Director of the Company, through Zenith Advisory Services Pty Ltd, which all expire on December 31, 2020.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement may have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
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 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s.
Mkango: Bulk sample for pilot metallurgical test work being loaded today for shipment to Australia – BFS on track
Mkango completed an updated Pre-Feasibility Study for the project in November 2015 and a Feasibility Study is currently underway, the initial phases of which included a 10,900 metre drilling programme and an updated mineral resource estimate, announced in February 2019. In March 2019, the Company announced receipt of £7 million (C$12.3 million) investment from Talaxis to fund completion of the Feasibility Study. Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development including funding the equity component thereof.
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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