Mkango secures financing to catalyse near term mining and recycling milestones

Highlights:

• Mkango Resources has conditionally raised gross proceeds of £3.5 million (CAN$5.7 million) through its joint brokers SP Angel Corporate Finance LLP and Alternative Resource Capital (ARC), together with Merlin Partners LLP, with proceeds focused on catalysing near term milestones for the company’s mining and recycling assets:
• Finalisation of the mine development agreement (MDA) for the Songwe Hill Rare Earths project with the Government of Malawi. This follows the definitive feasibility study announced in July 2022 and approval of the Environment, Social and Health Impact Assessment (ESHIA) announced in January 2023.
• Kick-start development of a new rare earth magnet recycling facility in Germany by HyProMag GmbH with minimum capacity of 100 tpy of NdFeB comprising recycled sintered magnets, alloys and powders with first production targeted for 2024. This complements the similar sized plant being developed at Tyseley Energy Plant in the UK by HyProMag Limited and the University of Birmingham, where first production is targeted for 2H23.
• Mkango is continuing to advance discussions with potential lenders and strategic investors for the Songwe Hill Rare Earths project in Malawi and the Pulawy Separation project in Poland.
• The projects will now be developed sequentially with initial focus on stand-alone development of Songwe to produce a mixed rare earth carbonate – next milestone is MDA approval, which is a key step towards project financing and development.
• Economic studies to date indicate the Pulawy Separation project can add significant value, and financing options to complete the feasibility study and develop as a stand-alone project continue to be evaluated.
• Bacchus Capital Advisers has been appointed to provide strategic and corporate finance advice, including strategic financing options for Songwe and Pulawy.

William Dawes, Chief Executive of Mkango stated:

“I am very pleased to welcome new institutional and private investors to the shareholder base and thank existing shareholders for their strong support for this oversubscribed fund raising. This positions the company for some major upcoming milestones, as negotiations for the MDA approach their conclusion, and to capitalise on its early mover advantage in rare earth magnet recycling with potential for near term production.”

Prof. Carlo Burkhardt, Co-founder and Director of HyProMag GmbH stated:

“We are very pleased that Mkango Resources is sharing this journey with us as we scale up operations in Germany. This investment enables us to stay at the forefront of rare earth magnet recycling in Europe and creates a strong platform for future growth in the region.”

Read the article online at: https://www.globalminingreview.com/mining/13022023/mkango-secures-financing-to-catalyse-near-term-mining-and-recycling-milestones/