HomeBattery metalsMkango closes acquisition of Songwe Hill and Maginito

Mkango closes acquisition of Songwe Hill and Maginito

Mkango Resources has received final approval from the TSX Venture Exchange in respect of the transaction whereby Mkango has acquired the 49% interest of Talaxis in Lancaster Exploration, which owns the Songwe Hill Rare Earths Project in Malawi, and Talaxis’ 24.5% interest in Maginito, which holds a 25% interest in rare earth magnet recycler HyProMag, for common shares in the Company aggregating to 54,166,666 Shares.

As a result of the Acquisition, Mkango owns 100% of the shares of Lancaster and 100% of the shares of Maginito.

Mkango has also received final approval from the TSX Venture Exchange in respect of the issuances of 2,916,666 Shares to Derek Linfield, Chairman of Mkango, and 1,666,666 Shares to Resource Early Stage Opportunities Company (RESOC) pursuant to the placing announced on 5 August 2021.

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In addition, the Company has received final approval for the issue of 541,666 Shares to Bacchus Capital Advisers (BCA) as part payment of its advisory fee in connection with the Acquisition.

Following this and the issuance of Shares to two option holders referred to below, Talaxis will own 69,452,381 Shares, representing approximately 32.4% of the enlarged issued share capital, Derek Linfield will own 8,056,227 Shares, representing approximately 3.8% of the enlarged issued share capital and RESOC will own 15,999,747 Shares, representing approximately 7.5% of the enlarged issued share capital.

The Shares issued to Talaxis in connection with the Acquisition and to Derek Linfield, RESOC and BCA are subject to a statutory hold period in Canada expiring on the date that is four months and one day from the issuance of the Shares.

In connection with the closing of the Acquisition, Mkango has issued 33,333 non-transferable warrants to Merlin Partners LLP which advised in connection with issuance of the Shares to RESOC.

Each warrant is exercisable for a period of 12 months with an exercise price of £0.24 per warrant. The warrants (and the underlying Shares) are subject to a statutory hold period in Canada expiring on the date that is four months and one day from the issuance of the warrants.

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