HomeBattery metalsMkango to acquire 100% of Songwe Hill and Maginito

Mkango to acquire 100% of Songwe Hill and Maginito

Mkango Resources has announced that Mkango and Talaxis have entered an agreement whereby Mkango will acquire Talaxis’ 49% interest 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 earths magnet recycler HyProMag, for 54,166,666 Mkango shares, equivalent to £13 million at the Placing Price.

Complementary to the Transaction, Mkango has conditionally raised £5.52 million from new and existing shareholders at a price of £0.24 per share including a proposed £700,000 investment by Non-Executive Chairman Derek Linfield.

Completion of the Placing and Transaction are subject to customary closing conditions and the approval of the TSX Venture Exchange. Completion of the Transaction and the investments proposed by Linfield and Resource Early-Stage Opportunities Company, another related party proposing to participate in the Placing, are also subject to the approval of the independent shareholders of the Company.

One additional investor has also made its participation in the Placing conditional on shareholder approval of the Transaction. Mkango has scheduled its Annual General and Special Meeting of Shareholders to approve, amongst other things, the Transaction and the investments by Linfield and RESOC, on 6 October 2021.

On completion of the Transaction, Mkango will own 100% of Lancaster and Maginito, in addition to its existing wholly owned interests in Mkango Polska and three other exploration licences in Malawi, which includes the exciting Mchinji exploration project.