TIDMMKA
RNS Number : 3133C
Mkango Resources Limited
18 January 2018
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
MKANGO ANNOUNCES SHAREHOLDER APPROVAL FOR TALAXIS
TRANSACTION
London / Calgary: January 18, 2018 - Mkango Resources Ltd.
(AIM/TSX-V: MKA) (the "Company" or "Mkango") is pleased announce
that shareholders have approved the entering into and completion of
the previously announced investment transaction with Talaxis
Limited ("Talaxis") on a disinterested basis (after excluding any
votes represented by shares held by Talaxis) at its annual and
special meeting of shareholders held in Toronto today (the
"Meeting").
Subject to final TSX Venture Exchange approval, it is
anticipated that investments of GBP5 million (comprising GBP2
million paid out of escrow and GBP3 million from Talaxis) will be
received by Mkango's subsidiary, Lancaster Exploration Limited, and
GBP1 million will be received by Mkango's new subsidiary, Maginito
Limited, on or around January 24, 2018.
All other business put forth at the Meeting was also approved by
shareholders of the Company, including:
- Re-election of Derek Linfield, William Dawes, Alexander Lemon,
David Berg, Eugene Chen and Adrian Reynolds as Directors of the
Company;
- Re-appointment of Meyers Norris Penny LLP as auditors of the Company; and
- Approval of the Company's stock option plan in accordance with
the policies of the TSX Venture Exchange.
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, 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,
a wholly owned subsidiary of Noble Group Limited, whereby, subject
to regulatory approval, Talaxis will fully fund a 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 will acquire a 49% interest in Maginito Limited,
a new subsidiary of 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 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. Forward
looking statements in this news release include statements with
respect to the global market for products using the rare earth
metals the Company is exploring for, completion of the feasibility
study and of the transactions contemplated in the Agreement, as
well as the use of proceeds from the investments into the Company
by Talaxis and the timing of such expenditures. 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, market demand for the metals and associated
downstream products for which Mkango is exploring, researching and
developing, the positive results of a feasibility study on the
Project, 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 Dawes Alexander Lemon
Chief Executive Officer President
will@mkango.ca alex@mkango.ca
UK: +44 207 3722 744
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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