Mkango Resources Ltd has been granted an Exclusive Prospecting Licence (EPL0475/17) (the Chimimbe Hill licence) covering the Chimimbe Hill nickel - cobalt deposit and other targets in in the Mchinji district of Central Malawi.
The Chimimbe Hill licence covers an area of 98.48 km2 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 totalled US$869 479 as at 30 September 2017. Subsequently, Mkango announced the receipt of £241 995 (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.
Lemon added: 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."