MKA Mkango Resources Ltd

THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR
DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES


Mkango Resources Ltd. (TSX VENTURE:MKA) (the "Corporation" or "Mkango") is
pleased to announce that it has entered into a non-binding term sheet with
certain affiliates of Sprott Inc. (the "Finders") to act as finders for the
Corporation under its previously announced proposed non-brokered private
placement (the "Private Placement").


Under the revised terms of the Private Placement, the Corporation will issue up
to 15,000,000 units (the "Units") at a price of C$0.10 per Unit for gross cash
proceeds of up to C$1,500,000. 


Each Unit will consist of one common share of the Corporation (a "Common Share")
and one transferable common share purchase warrant (a "Warrant") entitling the
holder to purchase a further Common Share at a price of C$0.20 for five years
from the date of the closing of the Private Placement.


If, after four months from the closing date of the Private Placement, the
closing price (or the average of the 'bid' and the 'ask', if not traded) of the
Common Shares on the TSX Venture Exchange exceeds C$0.30 for a period of 20
consecutive trading days, the Corporation may, within three trading days
thereof, accelerate the expiry of the Warrants to 20 trading days after the
issuance of a news release announcing the new expiry date.


It is anticipated that affiliates of Sprott Inc. will subscribe for a minimum of
C$750,000 of the Private Placement with the balance largely subscribed for by
directors, insiders or existing shareholders of the Corporation. 


It is also expected that the Corporation will pay commissions to the Finders
consisting of either cash or Units, at the Finder's election, equal to 7% of the
proceeds from the Units sold to investors introduced by, or whose subscriptions
are attributable to the efforts of, the Finders, or 7% of the number of Units
issued in connection with such investors' subscriptions under the Private
Placement. The Corporation will also issue to the Finders non-transferable
finder's warrants ("Finder's Warrants") equal to 7% of the number of Units
issued in connection with such investors' subscriptions under the Private
Placement. Each Finder's Warrant will entitle the Finders to acquire one
additional Common Share at a price of C$0.10 for two years from the closing of
the Private Placement. No finder's fee will be payable to the Finders on Units
subscribed for by officers, directors, insiders or existing shareholders of the
Corporation.


The use of proceeds from the Private Placement will be to finalise the
pre-feasibility study for the Songwe project and to facilitate a smooth
transition to the feasibility stage, in addition to general corporate purposes. 


SNC-Lavalin (Pty) Ltd. has completed the first phase of the pre-feasibility
study, focusing on the mill, flotation plant and associated infrastructure.
Current focus is on further optimisation of the flow sheet in parallel with
commencement of design work for the hydrometallurgical process plant.


The securities issued under the Private Placement will have a hold period of
four months and one day from the applicable closing date. The Private Placement
is subject to receipt of all necessary approvals, including the acceptance of
the TSX Venture Exchange.


This announcement is not for publication or distribution, directly or
indirectly, in or into the United States of America. This announcement is not an
offer of securities for sale into the United States. The securities referred to
herein have not been and will not be registered under the U.S. Securities Act of
1933, as amended, and may not be offered or sold in the United States, except
pursuant to an applicable exemption from registration. No public offering of
securities is being made in the United States.


The Songwe Hill Rare Earth Project

The Songwe Hill rare earth project is located within the 100% owned Exclusive
Exploration Licence 0284/10R in southeast Malawi. The Songwe project is
accessible by road from Zomba, the former capital, and Blantyre, the principal
commercial town of Malawi. Total travel time from Blantyre is approximately 2
hours, which will reduce as infrastructure continues to be upgraded in the area.



On 22 November 2012, Mkango filed a Technical Report (the "Report") for its
maiden NI 43-101 mineral resource estimate entitled NI 43-101 Technical Report
and Mineral Resource Estimate for the Songwe Hill Rare Earth Element (REE)
Project, Phalombe District, Republic of Malawi authored by Scott Swinden, Ph.D,
P.Geo. and Michael Hall, Pr.Sci.Nat., MAusIMM (who are independent "Qualified
Persons" in accordance with National Instrument 43-101 - Standards of Disclosure
for Mineral Projects). The Report's mineral resource estimates, as previously
announced, are summarized below. 




----------------------------------------------------------------------------
                      In-situ Indicated Mineral     In-situ Inferred Mineral
Cut-off grade                 Resource estimate            Resource estimate
----------------------------------------------------------------------------
1.0% TREO            13.2 mt grading 1.62% TREO   18.6 mt grading 1.38% TREO
1.5% TREO             6.2 mt grading 2.05% TREO    5.1 mt grading 1.83% TREO
----------------------------------------------------------------------------
TREO - total rare earth oxides including yttrium. In-situ - no geological   
losses applied. mt - million tonnes                                         



For further details of mineral resource estimates including breakdowns thereof,
please refer to the Report which is available at www.sedar.com.


Mkango is currently completing a pre-feasibility study for the Songwe project.

About Mkango Resources Ltd.

Mkango's primary business is the exploration for rare earth elements and
associated minerals in the Republic of Malawi. It holds, through its wholly
owned subsidiary Lancaster Exploration Limited, a 100% interest in two exclusive
prospecting licenses covering a combined area of 1,751 km2 in southern Malawi.
The main exploration target is the Songwe Hill rare earth deposit, which
features carbonatite hosted rare earth mineralisation and was subject to
previous exploration in the late 1980s.


In parallel, the Corporation is also undertaking regional exploration in the
second license area, known as Thambani, where a number of areas with potential
for uranium, zircon, corundum and niobium have been identified.


The Corporation's corporate strategy is to further develop the Songwe Hill rare
earth deposit and secure additional rare earth element and other mineral
opportunities in Malawi and elsewhere in Africa. 


On behalf of the Board of Mkango Resources Ltd.,

William Dawes, Chief Executive Officer

Cautionary Note Regarding Forward-Looking Statements 

This news release may contain forward-looking statements relating to the
Corporation. Readers are cautioned not to place undue reliance on
forward-looking statements, as there can be no assurance that the plans,
intentions or expectations upon which they are based will occur. By their
nature, forward-looking statements involve numerous assumptions, known and
unknown risks and uncertainties, both general and specific, that contribute to
the possibility that the predictions, forecasts, projections and other
forward-looking statements will not occur, which may cause actual performance
and results in future periods to differ materially from any estimates or
projections of future performance or results expressed or implied by such
forward-looking statements. Such factors and risks include, among others, the
interpretation and actual results of current exploration activities; uncertainty
of estimates of mineral resources, changes in project parameters as plans
continue to be refined; future commodity prices; possible variations in grade or
recovery rates; failure of equipment or processes to operate as anticipated;
labour disputes and other risks of the mining industry; delays in obtaining
governmental approvals or financing or in the completion of exploration. 


The forward-looking statements contained in this press release are made as of
the date of this press release. Except as required by law, the Corporation
disclaims any intention and assume no obligation to update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, except as required by applicable securities law.
Additionally, the Corporation undertakes no obligation to comment on the
expectations of, or statements made, by third parties in respect of the matters
discussed above. 


The TSX Venture Exchange has neither approved nor disapproved the contents of
this press release.


Neither the TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.


FOR FURTHER INFORMATION PLEASE CONTACT: 
Mkango Resources Ltd.
Ashlee Utterback
Corporate Communications Manager
Office: +1 (403) 444 - 5979
ashlee@mkango.ca
www.mkango.ca


Mkango Resources Ltd.
William Dawes
Chief Executive Officer
will@mkango.ca


Mkango Resources Ltd.
Alexander Lemon
President
alex@mkango.ca

Mkango Resources (TSXV:MKA)
Historical Stock Chart
From Mar 2024 to Apr 2024

Mkango Resources (TSXV:MKA)
Historical Stock Chart
From Apr 2023 to Apr 2024