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Mkango Resources gets regulatory approval for collaboration deal with Noble Resources

It also said it has obtained regulatory approval for a £450,000 placing with existing shareholders and new institutional investors.
Mkango Resources gets regulatory approval for collaboration deal with Noble Resources
Africa mine workers

Mkango Resources Ltd (LON:MKA, CVE:MKA) said today it has received regulatory approval for its previously announced agreement to collaborate with commodity trader Noble Resources.

It also said it has obtained regulatory approval for a £450,000 placing with existing shareholders and new institutional investors. 

READ: Mkango surges as Noble gets behind it ...

Mkango shares surged before Christmas on the news that Noble Resources is to lend its considerable weight to the rare earths explorer.

The group confirmed that it would issue 12 million 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.

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.

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

Mkango has also completed the placing of shares at a price of 3.5p each which raised £450,000 from existing and new institutional investors.

As a result two specialist Swiss mutual funds, the Rare Earth Elements Fund and the Metals Exploration Fund, each hold an interest of 3.6% in Mkango.

The group said the main uses of the 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, offtake and partnership discussions, as well as to evaluate additional opportunities and other expenditures.

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Sue Corrigan is a geologist and geoscientist with 40 years' industry experience in both exploration and development geology

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