Sign up USA
Proactive Investors - Run By Investors For Investors

Mkango surges as Noble Resources gets behind it

Will Dawes, chief executive of Mkango, said the deal should transform the company.
Mkango workers
Mkango is seeking partners to fund a BFS for Songwe Hill and further uranium exploration at Thambani

Commodity trader Noble Resources is to lend its considerable weight to Mkango Resources Ltd (LON:MKA, CVE:MKA), the rare earths explorer.

Noble, one of world's largest commodity traders and the largest in Asia, will identify the optimal markets and counter-parties for output from Mkango’s Songwe Hill rare earths project in Malawi.

Songwe Hill is in development and heading towards completion of a definitive feasibility study.

Noble will advise on the best strategy for the product mix at the project, and the optimal logistics route to take the project’s production to market.

The commodity trader will also be able to introduce Mkango to parties interested in financing development of the project.

Mkango said Noble would also be in its corner in market-related discussions with key stakeholders, including Mkango's financial, technical and legal advisers, prospective investors and lenders and relevant government agencies associated with the project.

Shares in Mkango shot up 8% in the first half hour of trading to 3.51p as the company revealed it would issue 12mln warrants to Noble, with an exercise price of 6.6p.

Should Noble exercise all of the warrants, which have a life-span of two years, it would end up with a 12.5% stake in Mkango.

Will Dawes, chief executive of Mkango, said the deal should transform the company.

"Mkango is focused on one of the few advanced stage rare earths projects outside China, and through Noble's network and relationships in Asia and elsewhere, its marketing expertise, logistics platform and off-take capabilities, we are very well positioned to advance the project against the backdrop of a recovering rare earths sector,” Dawes said.

Mkango added it has raised £450,000 from existing and new institutional investors through the issue of shares at 3.5p, a premium of a quarter of a penny to last Friday’s closing price.

Two specialist Swiss unit trust funds, the Rare Earth Elements Fund and the Metals Exploration Fund, are buying into the company and each will end up with an interest of 3.6% in Mkango after the share issue.

The main uses of proceeds from the placing will be to accelerate the optimisation of the processing flow sheet and evaluation of product marketing options to facilitate further marketing, off-take and partnership discussions.

View full MKA profile View Profile

Mkango Resources Ltd Timeline

Newswire
February 20 2017
Newswire
November 28 2016

Related Articles

Pioneer Resources: Access latest PPT from Proactive's CEO Sessions
June 18 2017
David Crook talked cash from caesium with investors.
picture of mining hammer
May 31 2017
Beaufort Securities estimates Katoro’s risk-adjusted equity value at £12.7mln or 11.7p per share
1509449982_Copper-cathode-from-Berta.jpg
October 31 2017
Coro is establishing itself as a producing copper company with potential for significant growth

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You understand that the Company receives either monetary or securities compensation for our services. We stand to benefit from any volume this write-up may generate.

You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Copyright © Proactiveinvestors.com, 2017. All Rights Reserved - Proactive Investors North America Inc., Proactive Investors LLC

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use