TIDMMKA
RNS Number : 7815X
Mkango Resources Limited
29 November 2017
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
Nickel - Cobalt Exploration Licence Granted in Malawi
London / Calgary: November 29, 2017 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased to announce
that it has been granted an Exclusive Prospecting Licence
(EPL0475/17) (the "Chimimbe Hill" licence) covering the Chimimbe
Hill nickel - cobalt deposit and other targets in Mchinji district,
central Malawi.
Highlights
-- The Chimimbe Hill licence covers an area of 98.48 sq km and
features laterite and saprolite hosted nickel, cobalt,chrome and
other mineralisation
-- Significant historical exploration has been completed,
including pitting, drilling and metallurgical test work
-- Magnetic anomalies in the licence area indicate exploration
potential for additional nickel - cobalt mineralisation
Mkango will re-evaluate the Chimimbe Hill deposit in the context
of geophysical data produced by the recent World Bank airborne
geophysical survey of Malawi, recent infrastructure developments in
the region, potential synergies with the Company's Songwe Hill rare
earths project and Thambani uranium-tantalum-niobium project, both
in Malawi, options relating to sulphuric acid and / or alternative
reagents supply, potential by-products, as well as opportunities to
produce nickel and cobalt products for the battery electric vehicle
market.
The evaluation of the licence will be funded from the Company's
existing working capital, which totaled US$869,479 as at September
30, 2017. Subsequently, Mkango announced the receipt of GBP241,995
(US$320,135) from the exercise of warrants.
Alexander Lemon, President of Mkango, said: "We are delighted to
have been granted the Chimimbe Hill nickel - cobalt exploration
licence, which is consistent with our strategy to target raw
materials and technologies geared to accelerating growth in the
electric vehicle market. Both nickel and cobalt are increasingly in
demand as cathode materials for batteries in electric vehicles.
This new licence, when combined with the Songwe Hill rare earths
project and our collaboration with Metalysis on neodymium alloys
for permanent magnets, positions Mkango as a potential future
supplier of the critical raw materials used in both batteries and
permanent magnet motors in electric vehicles.
We are commencing a full historical data review for Chimimbe
Hill, including an evaluation of exploration potential from recent
geophysics, and look forward to updating shareholders on this new
licence and the recently announced transaction with Talaxis in due
course."
Chimimbe Hill Exploration Licence
The Chimimbe Hill licence has been granted for the exploration
of nickel, cobalt, graphite, chrome and other minerals and covers
an area of 98.48 sq km in the Mchinji district of Central Malawi.
The licence is initially awarded for a 3-year term, after which it
can be renewed twice for further two-year periods with a 50%
reduction in the licence size required with each renewal. The
Chimimbe Hill area was selected following comprehensive in-house
analysis of available datasets. These included geological maps,
historic mineral occurrences, remote sensing data and satellite
imagery. A nickel anomaly was first identified by the Malawian
Geological Survey in 1968.
Chimimbe Hill is a prominent northerly trending elongate
feature, measuring 1200 metres by 500 metres and rising 140 metres
above the surrounding plain. Located in Mchiniji district,
approximately 80km west of Lilongwe, Malawi's capital city,
Chimimbe Hill is underlain by a deformed and metamorphosed
ultramafic body associated with high grade metamorphic rocks of the
Mozambique mobile belt.
Scientific and technical information contained in this release
has been approved and verified by Dr. Scott Swinden of Swinden
Geoscience Consultants Ltd, who is a "Qualified Person" in
accordance with National Instrument 43-101 -Standards of Disclosure
for Mineral Projects.
Market Abuse Regulation (MAR) Disclosure
Certain information contained in this announcement would have
been deemed inside information for the purposes of Article 7 of
Regulation (EU) No 596/2014 until the release of this
announcement.
About Mkango Resources Limited
Mkango's primary business 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". The Company holds three exclusive
prospecting licenses in Malawi, the Phalombe licence, the Thambani
licence and the Chimimbe Hill licence.
The main exploration target in the Phalombe licence is the
Songwe Hill rare earths' deposit ("Songwe"), which features
carbonatite hosted rare earth mineralisation and was subject to
previous exploration in the late 1980s. Mkango completed an updated
Pre-feasibility Study for the project in November 2015.
In November 2017, Mkango entered into an agreement with Talaxis
Limited ("Talaxis"), a wholly owned subsidiary of Noble Group
Limited, whereby, subject to regulatory approval, Talaxis will
fully fund a bankable feasibility study for Songwe by investing
GBP12 million (C$20 million) for a 49% interest in the project.
Talaxis will also have the option to acquire a further 26% interest
in the project by arranging funding for project development.
In addition, by investing a further GBP2 million (C$3.3
million), Talaxis may acquire a 49% interest in a new venture to be
established by Mkango focused on neodymium alloy powders, magnet
and other technologies. This includes the collaboration with
Metalysis Ltd announced in September 2017, which is focused on
advanced alloys using neodymium or praseodymium with other elements
for permanent magnet manufacturing.
Permanent magnets are critical materials for most electric
vehicles, direct drive wind turbines and many other high growth
applications. Neodymium is a key rare earth component at
Songwe.
Talaxis and Mkango have also agreed to cooperate as preferred
partners on rare earths projects worldwide and on other projects in
Malawi.
The main exploration targets of Mkango's remaining two licences
are, in the Thambani licence, uranium, niobium, tantalum and zircon
and, in the Chimimbe Hill licence, nickel and cobalt.
For more information, please visit www.mkango.ca.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements.
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, delays in obtaining
financing or governmental or stock exchange approvals. 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 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 Dawes Alexander Lemon
Chief Executive Officer President
will@mkango.ca alex@mkango.ca
Canada: +1 403 444 5979
www.mkango.ca
@MkangoResources
Blytheweigh
Financial Public Relations
Tim Blythe, Camilla Horsfall, Nick
Elwes
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Jeff Keating , Caroline Rowe
UK: +44 20 3470 0470
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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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