Mkango Resources Ltd. (AIM / TSXV: MKA) (the “Company” or “Mkango”) announces that further to the announcement of 29 August 2018, the board has now granted each of Ms Susan Muir (Non-Executive Director), Ms Sandra du Toit (Non-Executive Director) and Mr Shaun Treacy (Consultant), 335,000 options at an exercise price of C$0.16, being the higher of the TSX-V closing price of Mkango shares on 27, 28 and 29 August 2018 (“Options”).
Each Option will entitle the holder thereof to acquire one common share of Mkango, exercisable for a period of 10 years from the date of grant. The Options will vest in accordance with Mkango’s stock option plan or as otherwise required by the TSX Venture Exchange (the “TSXV”). The grant of the Options is subject to regulatory approval, including the approval of the TSXV.
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, 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.
All information is provided on an as-is basis. Where we allow Bloggers to publish articles on our platform please note these are not our opinions or views and we have no affiliation with the companies mentioned