Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango")
is pleased to announce the commencement of the final stage of
hydrometallurgy pilot plant test work for the Songwe Hill Rare
Earths project in Malawi (“Songwe” or the “Project”). Design and
engineering studies by lead engineer SENET (a DRA Global Group
Company) are nearing completion, with the Songwe Feasibility Study
targeted for the first quarter of next year.
Rising rare earth prices and concerns over
security of supply provide a favourable market backdrop, with
accelerating demand geared to growth in green energy and technology
applications.
The piloting of the hydrometallurgy processing
flowsheet is an integral part of the Feasibility Study and a
critical step towards commercialisation of the Songwe project. The
feed for the hydrometallurgy pilot plant is flotation concentrate
derived from the highly successful flotation pilot programme
completed earlier in the year.
William Dawes, Chief Executive of Mkango
stated: “This is a major milestone for the development of
Songwe and further cements the Company as being one of very few
advanced stage rare earth project developers positioned to meet
demand from accelerating growth in the electric vehicle sector,
wind power generation and other industries driven by
decarbonisation of the economy.
“Mkango’s integrated “mine, refine, recycle”
strategy is progressing on all fronts, encompassing development of
sustainably produced light (NdPr) and heavy (Dy/Tb) rare earths
from Malawi, a rare earths separation and downstream hub in Poland,
working with major Polish fertilizer and chemicals company, Grupa
Azoty Pulawy, and rare earth magnet (NdFeB) recycling in the UK and
Germany, via our interest in HyProMag.”
Scientific and technical information contained
in this release has been approved and verified by Nicholas Dempers
Pr.Eng (RSA) Reg. No 20150196, FSAIMM of SENET (a DRA Global Group
Company), who is a "Qualified Person" in accordance with National
Instrument 43-101 -- Standards of Disclosure for Mineral
Projects.
About
Mkango
Mkango's corporate strategy is to develop new
sustainable primary and secondary sources of neodymium,
praseodymium, dysprosium and terbium to supply accelerating demand
from electric vehicles, wind turbines and other clean technologies.
This integrated Mine, Refine, Recycle strategy differentiates
Mkango from its peers, uniquely positioning the Company in the rare
earths sector.
Mkango is developing Songwe Hill in Malawi with
a Feasibility Study targeted for completion in Q1 2022. Malawi is
known as "The Warm Heart of Africa", a stable democracy with
existing road, rail and power infrastructure, and new
infrastructure developments underway.
In parallel, Mkango and Grupa Azoty PULAWY,
Poland's leading chemical company and the second
largest manufacturer of nitrogen and compound fertilizers in
the European Union, have agreed to work together towards
development of a rare earth Separation Plant at Pulawy in Poland.
The Separation Plant will process the purified mixed rare earth
carbonate produced at Songwe.
Through its ownership of Maginito
(www.maginito.com), Mkango is also developing green technology
opportunities in the rare earths supply chain, encompassing
neodymium (NdFeB) magnet recycling as well as innovative rare earth
alloy, magnet, and separation technologies. Maginito holds a 42%
interest in UK rare earth (NdFeB) magnet recycler, HyProMag
(www.hypromag.com) with an option to increase its interest to
49%.
Mkango also has an extensive exploration
portfolio in Malawi, including the Mchinji rutile exploration
project, the Thambani uranium-tantalum-niobium-zircon project and
Chimimbe nickel-cobalt project.
For more information, please
visit www.mkango.ca
Market Abuse Regulation (MAR)
Disclosure
The information
contained within this
announcement is deemed by the Company to
constitute inside information as stipulated under the
Market Abuse Regulations (EU) No. 596/2014 ('MAR') which
has been incorporated into UK law by the European Union
(Withdrawal) Act 2018. Upon the
publication of this announcement via
Regulatory Information Service, this inside information is now
considered to be in the public domain.
Cautionary Note Regarding
Forward-Looking Statements
This news release contains forward-looking
statements (within the meaning of that term under applicable
securities laws) with respect to Mkango, its business and the
Project. Generally, forward looking statements can be identified by
the use of words such as “plans”, “expects” or “is expected”,
“scheduled”, “estimates” “intends”, “anticipates”, “believes”, or
variations of such words and phrases, or statements that certain
actions, events or results “can”, “may”, “could”, “would”,
“should”, “might” or “will”, occur or be achieved, or the negative
connotations thereof. 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, without limiting the foregoing,
governmental action relating to COVID-19, COVID-19 and other market
effects on global demand for the metals and associated downstream
products for which Mkango is exploring, researching and developing,
results from the current pilot plant studies, the results of the
current exploration programme at Mchinji, the development of a
separation plant, the positive results of a feasibility study on
the Project and delays in obtaining financing or governmental or
stock exchange approvals. The forward-looking statements contained
in this news release are made as of the date of this news release.
Except as required by law, the Company disclaims any intention and
assumes 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 law. Additionally,
the Company undertakes no obligation to comment on the expectations
of, or statements made by, third parties in respect of the matters
discussed above.
For further information on Mkango,
please contact:
Mkango Resources Limited |
William DawesChief Executive Officerwill@mkango.caCanada: +1 403
444 5979 |
Alexander LemonPresidentalex@mkango.ca |
www.mkango.ca@MkangoResources
BlytheweighFinancial Public
RelationsTim BlytheUK: +44 207 138 3204
SP Angel Corporate Finance
LLPNominated Adviser and Joint BrokerJeff Keating,
Caroline RoweUK: +44 20 3470 0470
Alternative Resource
CapitalJoint BrokerAlex Wood, Keith DowsingUK: +44 20 7186
9004/5
Bacchus Capital
AdvisersStrategic and Financial AdviserRichard Allan,
Andrew KrelleUK: +44 20 3848 1642 / +44 79 5636 2903
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.
This press release does not constitute an offer
to sell or a solicitation of an offer to buy any equity or other
securities of the Company in the United States. The securities of
the Company will not be registered under the United States
Securities Act of 1933, as amended (the “U.S. Securities Act”) and
may not be offered or sold within the United States to, or for the
account or benefit of, U.S. persons except in certain transactions
exempt from the registration requirements of the U.S. Securities
Act.
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