Mkango Resources has also received regulatory approval for the £450 000 share placing that it intends to undertake with existing shareholders and new institutional investors.
In connection with the placing agreement, Mkango Resources has issued 12 million common share purchase warrants to Noble Resources, aligning Noble’s interests with those of Mkango’s shareholders.
Each whole warrant will entitle Noble to acquire one common share of Mkango Resources at a price of 6.6p until 30 December 2018. The warrants give Noble the right to acquire up to a 12.5% interest in Mkango.
What is more, Mkango has issued Zenith Advisory Services with warrants to acquire 1.2 million common shares of Mkango Resources on the same terms as those issued to Noble.
Complementary to and on the basis of the agreement, Mkango has completed a placing of 12.8 million common shares at 3.5p per common share to raise £450 000. As a result, two specialist Swiss mutual funds, the Rare Earth Elements Fund and the Metals Exploration Fund, now each holds an interest of 3.6% in Mkango.
The main uses of proceeds from the placing will be to accelerate the optimisation of the processing flow sheet and evaluation of product marketing options to facilitate further marketing, offtake and partnership discussions, as well as to evaluate additional opportunities and other expenditures.
The primary business of Mkango Resources is the 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”.
Mkango holds a 100% interest in two exclusive prospecting licenses in southern Malawi, the Phalombe licence and the Thambani licence, through its wholly owned subsidiary Lancaster Exploration Limited.