| 1 | | Mkango Raises £1.25M (C.19M) from Existing Shareholders and in Addition, €0.20M (C| 2 | Mkango Raises £1.25M (C$2.19M) from Existing Shareholders and in Addition, €0.20M (C$0.30M) from Eit Rawmaterials to Advance Its Portfolio of Advanced Stage Strategic Rare Earth Assets
Highlights - Mkango Resources (“Mkango” or the “Company”) has conditionally raised gross proceeds of £1.25M (C$2.19M) via a direct Company subscription from existing shareholders (the “Subscription”).
- EIT RawMaterials GmbH (“EIT RawMaterials”) will, subject to the approval of the Toronto Venture Exchange (TSX-V), provide additional funding of €200,000 (C$302,000) and receive a 5.7% interest in Mkango Polska sp. z o.o. (“Mkango Polska”), currently a 100% held subsidiary of Mkango developing the Pulawy Rare Earths Separation Project in Poland (the “Pulawy Project”), which will fund commencement of process optimisation for the Songwe Hill Rare Earths Project (the “Songwe Project”) in Malawi, a future source of mixed rare earth carbonate feed for the Pulawy Project.
- EIT RawMaterials is an impact investor, and provides strategic support to start-up and scale-up projects across metals and minerals value chain. EIT RawMaterials was established in 2015 to develop raw materials into a major strength for Europe by driving innovation, education, and entrepreneurship. EIT RawMaterials is the acting legal entity of the Knowledge and Innovation Community “EIT RawMaterials” comprising some 300 members from industry, university and research and development in the raw materials sector collaborating with the European Institute of Innovation and Technology, and co-funded by the European Union, and mandated to lead the European Raw Materials Alliance.
- Last month’s signing of the Mine Development Agreement (‘’MDA’’) for the Songwe Project and the opportunity to progress process optimisation through the investment by EIT RawMaterials enhance options for the Songwe and Pulawy Projects in conjunction with the ongoing strategic review.
- In parallel, discussions continue with potential strategic investors, project finance providers, grant funding bodies and other sources to finance recycling scale-up opportunities and further technology roll-out.
- Use of proceeds from the Subscription include the acquisition of additional equipment for the 2025 commercial development of rare earth magnet recycling operations at Tyseley Energy Park in Birmingham, UK and at Pforzheim, Germany, by HyProMag Limited (“HyProMag”) and HyProMag GmbH, respectively, in addition to working capital.
- The Company continues to put a strong focus on cost cutting initiatives to conserve working capital in order to advance the Company’s assets, and executive management have agreed to continue the salary reductions and bonus scheme announced on 10thMay 2024.
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.30M) from Eit Rawmaterials to Advance Its Portfolio of Advanced Stage Strategic Rare Earth Assets
Highlights - Mkango Resources (“Mkango” or the “Company”) has conditionally raised gross proceeds of £1.25M (C.19M) via a direct Company subscription from existing shareholders (the “Subscription”).
- EIT RawMaterials GmbH (“EIT RawMaterials”) will, subject to the approval of the Toronto Venture Exchange (TSX-V), provide additional funding of €200,000 (C2,000) and receive a 5.7% interest in Mkango Polska sp. z o.o. (“Mkango Polska”), currently a 100% held subsidiary of Mkango developing the Pulawy Rare Earths Separation Project in Poland (the “Pulawy Project”), which will fund commencement of process optimisation for the Songwe Hill Rare Earths Project (the “Songwe Project”) in Malawi, a future source of mixed rare earth carbonate feed for the Pulawy Project.
- EIT RawMaterials is an impact investor, and provides strategic support to start-up and scale-up projects across metals and minerals value chain. EIT RawMaterials was established in 2015 to develop raw materials into a major strength for Europe by driving innovation, education, and entrepreneurship. EIT RawMaterials is the acting legal entity of the Knowledge and Innovation Community “EIT RawMaterials” comprising some 300 members from industry, university and research and development in the raw materials sector collaborating with the European Institute of Innovation and Technology, and co-funded by the European Union, and mandated to lead the European Raw Materials Alliance.
- Last month’s signing of the Mine Development Agreement (‘’MDA’’) for the Songwe Project and the opportunity to progress process optimisation through the investment by EIT RawMaterials enhance options for the Songwe and Pulawy Projects in conjunction with the ongoing strategic review.
- In parallel, discussions continue with potential strategic investors, project finance providers, grant funding bodies and other sources to finance recycling scale-up opportunities and further technology roll-out.
- Use of proceeds from the Subscription include the acquisition of additional equipment for the 2025 commercial development of rare earth magnet recycling operations at Tyseley Energy Park in Birmingham, UK and at Pforzheim, Germany, by HyProMag Limited (“HyProMag”) and HyProMag GmbH, respectively, in addition to working capital.
- The Company continues to put a strong focus on cost cutting initiatives to conserve working capital in order to advance the Company’s assets, and executive management have agreed to continue the salary reductions and bonus scheme announced on 10thMay 2024.
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(20min delay)