MKANGO TO COMMENCE EXPLORATION ON 100% OWNED THAMBANI URANIUM LICENCE FOLLOWING TERMINATION OF AGREEMENT WITH METALNRG
Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”), announces that the Company and MetalNRG plc (“MetalNRG”) have agreed to terminate their Non-Binding Heads of Terms Agreement announced on April 29, 2019, which set out their intention to enter into an earn-in agreement for Mkango’s Thambani Licence (“Thambani”). The parties were to have entered into the Transaction Agreement on or before 30th June 2019.
Following the inflow of £1.1 million from the recent warrant exercise, Mkango has decided to commence a further exploration programme at Thambani in 2019, therefore retaining 100% of the Thambani exploration exclusive prospecting licence, which features multiple zones of high-grade uranium, tantalum and niobium, with a number of extensive uranium radiometric anomalies. In parallel, Mkango will continue to evaluate partnership opportunities for the project.
Further updates will be provided on Thambani in due course.
The feasibility study for the Songwe Hill Rare Earths project continues in parallel, fully funded by strategic partner, Talaxis Limited, a subsidiary of Noble Group.
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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 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 a £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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