MKANGO ANNOUNCES RECEIPT OF £7 MILLION (C$12.3 MILLION) INVESTMENT FROM TALAXIS TO FUND COMPLETION OF THE FEASIBILITY STUDY FOR THE SONGWE HILL RARE EARTHS PROJECT IN MALAWI
Mkango Resources Ltd. (AIM / TSXV: MKA) (the “Company” or “Mkango”), the rare earths exploration and development company focused on Malawi, is pleased to announce that following the publication of a NI 43-101 Technical Report (the “Technical Report”) for the Songwe Hill Rare Earths Project (“Songwe”) resource update on March 21, 2019, Talaxis Limited (“Talaxis”) has invested an additional £7 million into Lancaster Exploration Limited (“Lancaster”), which is the holder of the licence for Songwe. As a result of this investment, Talaxis’ equity interest in Lancaster will increase from 20% to 49%, with Mkango holding the remaining 51%.
The investment by Talaxis will fund completion of the Feasibility Study for Songwe, which is currently underway and expected to be completed in 2020. The updated resource described in the Technical Report will form the basis for 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.
William Dawes, Chief Executive of Mkango stated: “Mkango is uniquely positioned in the rare earths sector with an advanced stage rare earths project in a favourable jurisdiction and a strong strategic partnership with Talaxis providing the financial means and network of relationships throughout Asia and elsewhere to deliver a successful project.”
Alexander Lemon, President of Mkango stated: “This project will be transformational for Malawi, empowering local communities and validating Malawi’s credentials as one of Africa’s premier investment destinations. We are very appreciative of the support we continue to receive from the Government of Malawi and all stakeholders as we progress through the Feasibility Study.”
Daniel Mamadou, Director of Talaxis and co-Head of Technology Metals at Noble Group said: “Rare earths play a core role in our portfolio of technology metals. High performance electric motors and permanent magnet applications drives the demand for neodymium and praseodymium, making these elements key enablers of EV policies globally. The results of the drill campaign at Songwe are encouraging and point towards the potential of creating a world class asset. We are pleased to extend our strategic partnership with Mkango and to increase our investment in Songwe, which is one of the few advanced stage rare earths projects currently. We look forward to collaborating with Mkango to ensure this project is developed to its full potential.”
Further details on the scope and other aspects of the Feasibility Study, and plans for 2019 will be announced in due course. The Technical Report is available under the Company’s profile on www.sedar.com. The press release in relation to the resource update is available via the following link: https://www.mkango.ca/s/news.asp?ReportID=844546
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 updated mineral resource estimate.
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.
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.