Mkango Resources, the TSX-listed rare earth elements and associated minerals explorer focused on Malawi, has closed the second tranche of its non-brokered private placement of units, raising C$2.27 million.

Under the second tranche, 6 445 250 units were issued at a price of C$0.10 per unit for gross cash proceeds of C$644 525. The first tranche of the private placement closed on March 24, 2014 pursuant to which 16 262 603 units were issued at a price of C$0.10 per unit for gross cash proceeds of C$1 626 260. In total, 22 707 853 units of the corporation were issued in connection with the private placement for gross cash proceeds of C$2 270 785.

“The placement was a success and provides a strong platform for advancement of the Songwe Hill rare earth project through the pre-feasibility stage and for commencement of the feasibility study. Apart from strong participation from existing shareholders, we are very pleased to welcome Sprott Inc.’s affiliate as a major new shareholder of Mkango,” said Mkango chief executive William Dawes.

The proceeds from the second tranche will be used to commence the feasibility study, following completion of the pre-feasibility study, in addition to general corporate purposes. The Songwe Hill rare earth project is located within the 100% owned exclusive exploration licence 0284/10R in southeast Malawi.

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