Proactiveinvestors USA & Canada Mkango Resources Ltd https://ca.proactiveinvestors.com Proactiveinvestors USA & Canada Mkango Resources Ltd RSS feed en Sun, 26 May 2019 15:31:25 -0400 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - Mkango's Will Dawes updates as Songwe Hill advances towards production decision ]]> https://ca.proactiveinvestors.com/companies/stocktube/13253/mkango-s-will-dawes-updates-as-songwe-hill-advances-towards-production-decision-13253.html Wed, 08 May 2019 09:40:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/13253/mkango-s-will-dawes-updates-as-songwe-hill-advances-towards-production-decision-13253.html <![CDATA[News - Mkango Resources sets itself for rare earths upswing as EVs take off ]]> https://ca.proactiveinvestors.com/companies/news/219475/mkango-resources-sets-itself-for-rare-earths-upswing-as-evs-take-off-219475.html  

How is it doing

Mkango Resources Ltd’s (LON:MKA) Songwe Hill rare earth operation in Malawi is moving rapidly towards a production decision.

A significant investment at the project level from major commodities trader Talaxis is helping it along.

So far, Talaxis has committed £12mln at the project level, with a view to supporting further exploration and to hitting certain development milestones.

That investment as it stands will net out at a 49% interest for Talaxis once the project is taken through the bankable feasibility stage.

Once that study is published, Talaxis can take its stake up to 75% by arranging the finance to take Songwe Hill through to production and an arrangement that gives Mkango a 25% free carried interest.

In February, Mkango announced an updated mineral resource estimate for Songwe of 8 Mt grading 1.50% TREO (rare earth metals) Measured, 12.2 Mt grading 1.35% Indicated and 27.5 Mt grading 1.33% Inferred.

Metallurgy 

Talaxis also made an investment totalling £2m in Mkango’s downstream arm Maginito, which has a collaboration in place with powder alloy pioneer Metalysis into permanent magnet manufacturing.

Permanent magnets are critical materials for most electric vehicles, direct drive wind turbines and many other high growth applications.

Thambani

At Thambani, also in Malawi, Mkango has an agreement with MetalNRG for it to spend US$2mln on exploration for a 75% interest.

Uranium indications at Thambani were confirmed by a World Bank funded nationwide airborne geophysical programme.

Grab samples have also returned high-grade uranium, tantalum and niobium values.

 

What it’s worth

In 2018, broker SP Angel suggested that when an additional investment into a downstream processing operation with Metalysis is taken into consideration, the overall implied valuation for Songwe Hill runs to a tidy enough £28.6mln.

And that, in turn, means that the interest in Songwe Hills that Mkango retains is worth 13.4p per share, according to calculations made by broker SP Angel.

The broker estimates that gives  Mkango a 25% free carry on a 500,000 tonnes per year operation with a net present value between US$137mln and more than US$440mln

SP Angel though, reckons that if it exercises its option, Talaxis’s total commitment would amount to £176mln, and that the valuation read-across for Songwe Hill, allowing for the 25% that Mkango would retain, amounts to £235mln.

That, in turn, nets out at a total valuation of £58.7mln for Mkango’s stake compared to a market value of £9.75mln at 7.25p currently.

  What the boss says: Alexander Lemon, president

 “With MetalNRG funding the Thambani uranium project and the previously announced transaction with Talaxis funding Mkango's Songwe Hill rare earths project, Mkango shareholders can look forward to an exciting year of news flow and progress in two of the market's most strategic commodities at present."

 

Video

Inflexion points

Metallurgical optimisation is underway for ore at Songwe Hill focused on flotation, hydrometallurgy and acid regeneration

Feasibility study at Songwe Hill expected in 2020, triggering production decision by Talaxis

Results from exploration at Thambani 

 

Blue Sky

The funds invested in Maginito by Talaxis will be used to advance complementary downstream opportunities in the rare earths supply chain, in particular new rare earth alloy, magnet and other technologies geared to accelerating growth in the electric vehicle market, including the Metalysis Joint Venture, says SP Angel.

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Wed, 01 May 2019 10:40:00 -0400 https://ca.proactiveinvestors.com/companies/news/219475/mkango-resources-sets-itself-for-rare-earths-upswing-as-evs-take-off-219475.html
<![CDATA[News - Mkango Resources well-funded through deal with Talaxis ]]> https://ca.proactiveinvestors.com/companies/news/219461/mkango-resources-well-funded-through-deal-with-talaxis-219461.html Malawi-focused Mkango Resources Ltd (LON:MKA) closed 2018 with cash of US$2.4mln, a figure boosted by its collaboration with Noble Group division Talaxis.

Since then, the junior has received a further US$9mln from Talaxis following completion of a technical report on the Songwe Hill rare earth project.

Through that investment, Talaxis increased its stake in Lancaster Exploration, the holder of the licence for Songwe in Malawi, to 49%; Mkango holds the remaining 51%.

Mkango posted a loss of US$7.2mln in 2018 as it ramped up spending on a feasibility study at Songwe Hill that will be finished next year.

Once that is published, Talaxis has the option to take a further 26% of the project in return for arranging the finance to take it through to production.

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Wed, 01 May 2019 09:01:00 -0400 https://ca.proactiveinvestors.com/companies/news/219461/mkango-resources-well-funded-through-deal-with-talaxis-219461.html
<![CDATA[RNS press release - MKANGO ANNOUNCES 2018 FULL YEAR RESULTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190501070003_14058346/ Wed, 01 May 2019 02:00:03 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190501070003_14058346/ <![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429140609_14055822/ Mon, 29 Apr 2019 09:06:09 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429140609_14055822/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429140052_14055815/ Mon, 29 Apr 2019 09:00:52 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429140052_14055815/ <![CDATA[News - Mkango Resources unveils new partnership for Thambani uranium project ]]> https://ca.proactiveinvestors.com/companies/news/219233/mkango-resources-unveils-new-partnership-for-thambani-uranium-project-219233.html Mkango Resources Ltd (LON:MKA, CVE:MKA) shares rose on Monday as the firm unveiled a new partnership deal with MetalNRG PLC which is committing to spend US$2mln on exploration at the Thambani uranium project, in Malawi.

MetalNRG will earn up to 75% of Thambani as it invests in the project.

“This transaction is another milestone for Mkango and for Malawi, and is further endorsement of the company's strategy and potential,” said Alexander Lemon, Mkango president.

READ: Mkango receives £7mln triggered investment

It is to spend US$500,000 in the first twelve months of the partnership. Initial work programmes will include 1,500 metres of drilling, and, upon completion it will secure its first 25% interest in the asset.

Following the initial programme the earn-in partnership deal sees MetalNRG investing a further US$700,000 over the subsequent twelve months and that would take its interest in the project up to 49%.

A third work programme, costing US$800,000 over a third year, would take MetalNRG’s stake to 75%.

Mkango, meanwhile, retains right of first refusal on 100% of Thambani’s offtake for uranium and other minerals.

Lemon added: “With MetalNRG funding the Thambani uranium project and the previously announced transaction with Talaxis funding Mkango's Songwe Hill rare earths project, Mkango shareholders can look forward to an exciting year of news flow and progress in two of the market's most strategic commodities at present.

“We are pleased to be working with MetalNRG, and look forward to a new drilling program being carried out at Thambani."

In afternoon trading, shares in Mankgo were 7.3% higher at 8.05p.

 -- Adds share price --

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Mon, 29 Apr 2019 07:50:00 -0400 https://ca.proactiveinvestors.com/companies/news/219233/mkango-resources-unveils-new-partnership-for-thambani-uranium-project-219233.html
<![CDATA[RNS press release - Second Price Monitoring Extn ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429110809_14055434/ Mon, 29 Apr 2019 06:08:09 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429110809_14055434/ <![CDATA[RNS press release - Price Monitoring Extension ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429110033_14055388/ Mon, 29 Apr 2019 06:00:33 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429110033_14055388/ <![CDATA[RNS press release - US$ 2M EARN-IN AGREEMENT WITH METALNRG ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429070008_14054513/ Mon, 29 Apr 2019 02:00:08 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190429070008_14054513/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190411143004_14038152/ Thu, 11 Apr 2019 09:30:04 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190411143004_14038152/ <![CDATA[News - Mkango receives £7mln triggered investment from Talaxis ]]> https://ca.proactiveinvestors.com/companies/news/217395/mkango-receives-7mln-triggered-investment-from-talaxis-217395.html Mkango Resources Ltd (LON:MKA) has received £7mln from Talaxis to fund the completion of the feasibility study for the Songwe Hill rare-earths project.

The cash infusion was triggered by the publication of a NI 43-101 technical report resource update a week ago.

READ: Read-across from Talaxis investment suggests Mkango is trading at a significant discount, says SP Angel

As a result of stumping up a further £7mln (C$12.3mln), Talaxis has increased its stake in Lancaster Exploration, which is the holder of the licence for the Songwe project in Malawi, to 49% from 49%; Mkango holds the remaining 51%.

The investment by Talaxis will fund completion of the feasibility study for Songwe, which is currently underway and expected to be completed in 2020. The updated resource described in the technical report published on 21 March will form the basis for the feasibility study.

Following completion of the feasibility study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging the financing for project development including funding the equity component thereof.

Alexander Lemon, president of Mkango, said the Songwe project would be “transformational for Malawi”, empowering local communities and establishing the country’s reputation as “one of Africa’s premier investment destinations”.

Daniel Mamadou, a director of Talaxis and the co-head of technology metals at Noble Group, said rare-earths play a core role in Talaxis's portfolio of technology metals.

“High-performance electric motors and permanent magnet applications drives the demand for neodymium and praseodymium, making these elements key enablers of EV [electric vehicle] policies globally,” Mamadou said.

“The results of the drill campaign at Songwe are encouraging and point towards the potential of creating a world-class asset. We are pleased to extend our strategic partnership with Mkango and to increase our investment in Songwe, which is one of the few advanced stage rare-earths projects currently,” he added.

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Thu, 28 Mar 2019 08:25:00 -0400 https://ca.proactiveinvestors.com/companies/news/217395/mkango-receives-7mln-triggered-investment-from-talaxis-217395.html
<![CDATA[RNS press release - MKANGO ANNOUNCES RECEIPT OF £7M FROM TALAXIS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190328070002_14018601/ Thu, 28 Mar 2019 03:00:02 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190328070002_14018601/ <![CDATA[News - Mkango triggers investment condition with filing of technical report ]]> https://ca.proactiveinvestors.com/companies/news/217012/mkango-triggers-investment-condition-with-filing-of-technical-report-217012.html Mkango Resources Ltd (LON:MKA), the exploration and development company focused on Malawi, has filed a NI 43-101 technical report for its Songwe Hill Rare Earths Project.

The report relates to the resource update announced last month.

READ: Mkango Resources increases mineral resource estimate at Songwe

With the filing of the technical report, Mkango has fulfilled the condition for Talaxis Limited to advance the next tranche of investment, totalling £7mln, in accordance with the definitive agreements between Mkango and Talaxis announced on 18 May 2018.

The company has notified Talaxis of the fulfilment of this condition and will update the market on receipt of the investment, which will increase Talaxis's stake in Lancaster Exploration Limited, the company that holds the licence for Songwe, to 49%.

Mkango files report - gives them access to $7m - Rare Earth Minerals, essential component of Ev cars #mka https://t.co/DpKBFT5gmx

— Hendi (@Hendi213) March 22, 2019 ]]>
Fri, 22 Mar 2019 08:22:00 -0400 https://ca.proactiveinvestors.com/companies/news/217012/mkango-triggers-investment-condition-with-filing-of-technical-report-217012.html
<![CDATA[RNS press release - MKANGO FILES TECHNICAL REPORT ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190322070004_14011706/ Fri, 22 Mar 2019 03:00:04 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190322070004_14011706/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190320133002_14009491/ Wed, 20 Mar 2019 09:30:02 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190320133002_14009491/ <![CDATA[RNS press release - MKANGO GRANTS STOCK OPTIONS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190311133004_13997641/ Mon, 11 Mar 2019 09:30:04 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190311133004_13997641/ <![CDATA[News - Mkango Resources increases mineral resource estimate at Songwe ]]> https://ca.proactiveinvestors.com/companies/news/213887/mkango-resources-increases-mineral-resource-estimate-at-songwe-213887.html Mkango Resources Ltd (LON:MKA) has increased the mineral resource estimate at its Songwe Hill rare earths project in Malawi.

The results from last year’s “highly successful” drill programme have allowed the explorer to increase the measured and indicated resource estimate to 21mln tonnes grading 1.41%.

READ: Mkango gets licence extension for Malawi project

Much of what was previously in the inferred resource has been upgraded to either the measured or indicated categories.

Almost all the mineral resource is located less than 160 metres below the surface so there is potential for the estimates to increase should Mkango dig further down.

The updated resource underpins the ongoing feasibility study, as well as Mkango’s aim of being a long-term producer of neodymium, praseodymium, dysprosium and terbium – elements used in electric vehicle motors and wind turbines.

The publication of the NI 43-101 Technical Report associated with the resource update will trigger the next £7mln milestone investment from Talaxis to fund completion of the feasibility study.

Next wave of funding due for feasibility study

“All the objectives for the 2018 drill programme have been achieved and we are very pleased to announce this increased resource at Songwe,” said chief executive William Dawes.

“This provides a solid platform for completion of a revised mine plan to be incorporated into the feasibility study.

“Based on the larger Measured and Indicated Resource, the feasibility study will evaluate opportunities to include more tonnes into the mine plan, expand operations, extend the mine life, reduce the strip ratio and therefore reduce mining costs.”

Mkango shares were down 2.4% to 9.2p in early deals on Monday.

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Mon, 04 Feb 2019 08:42:00 -0500 https://ca.proactiveinvestors.com/companies/news/213887/mkango-resources-increases-mineral-resource-estimate-at-songwe-213887.html
<![CDATA[RNS press release - MKANGO ANNOUNCES UPDATED MINERAL RESOURCE ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190204070004_13956264/ Mon, 04 Feb 2019 02:00:04 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190204070004_13956264/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF OPTIONS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190104070003_13923537/ Fri, 04 Jan 2019 02:00:03 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20190104070003_13923537/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181217143003_13906535/ Mon, 17 Dec 2018 09:30:03 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181217143003_13906535/ <![CDATA[News - Mkango Resources gets licence extension for Malawi project ]]> https://ca.proactiveinvestors.com/companies/news/211037/mkango-resources-gets-licence-extension-for-malawi-project-211037.html Mkango Resources Ltd (LON:MKA, CVE:MKA) told investors that it has secured a licence extension for exploration in the Phalombe.

The government of Malawi has given the company another two years under its current exploration phase, with the latest arrangement now running to January 2021.

Phalombe hosts the Songwe Hill rare earths project, Mkango’s flagship project.

READ: Mkango Resources sees highest rare earth grades to date

Earlier this month, Mkango revealed the final batch of drill results from the 2018 drill programme, at the Songwe Hill rare earths project, has unearthed the highest grades to date.

The company, in a statement, said that the results of the majority of the remaining holes (19 of 21) from the 10,900-metre drill programme saw significant zones of rare earths mineralisation grading above 1% total rare earth oxides (TREO). Drill hole ‘PX112’ was the highlight with 3.3% TREO across just over 100 metres, including a higher grade 20.5-metre section which measured 4.2% TREO.

With the final batch of results now in, the company is advancing efforts to have a new resource estimate produced for Songwe Hill.

"This rounds off what has been a highly successful drill programme with another excellent set of results,” said Mkango chief executive William Dawes said on 3 December.

“Metallurgical optimisation and work relating to the Environmental, Social and Health Impact Assessment are also progressing well and we look forward to updating the market as we progress the feasibility study through 2019, starting with the resource update in the first quarter."

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Wed, 12 Dec 2018 08:16:00 -0500 https://ca.proactiveinvestors.com/companies/news/211037/mkango-resources-gets-licence-extension-for-malawi-project-211037.html
<![CDATA[RNS press release - MKANGO RENEWS LICENCE FOR SONGWE HILL PROJECT ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181212070002_13900074/ Wed, 12 Dec 2018 02:00:02 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181212070002_13900074/ <![CDATA[Media files - Mkango rare earths project results now fed into resource programme ]]> https://ca.proactiveinvestors.com/companies/stocktube/11566/mkango-rare-earths-project-results-now-fed-into-resource-programme-11566.html Mon, 10 Dec 2018 15:09:00 -0500 https://ca.proactiveinvestors.com/companies/stocktube/11566/mkango-rare-earths-project-results-now-fed-into-resource-programme-11566.html <![CDATA[RNS press release - MKANGO ANNOUNCES DIRECTOR DEALING ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181205070004_13891662/ Wed, 05 Dec 2018 02:00:04 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181205070004_13891662/ <![CDATA[News - Mkango Resources sees highest rare earth grades to date at Songwe Hill ]]> https://ca.proactiveinvestors.com/companies/news/210370/mkango-resources-sees-highest-rare-earth-grades-to-date-at-songwe-hill-210370.html Mkango Resources Ltd (LON:MKA, CVE:MKA) told investors that the final batch of drill results from the 2018 drill programme, at the Songwe Hill rare earths project, has unearthed the highest grades to date.

The company, in a statement, said that the results of the majority of the remaining holes (19 of 21) from the 10,900 metre drill programme saw significant zones of rare earths mineralisation grading above 1% total rare earth oxides (TREO).

READ: Mkango appears to trade at a significant discount

Drill hole ‘PX112’ was the highlight with 3.3% TREO across just over 100 metres, including a higher grade 20.5 metre section which measured 4.2% TREO.

With the final batch of results now in, the company is advancing efforts to have a new resource estimate produced for Songwe Hill.

"This rounds off what has been a highly successful drill programme with another excellent set of results,” said William Dawes, Mkango chief executive.

“Metallurgical optimisation and work relating to the Environmental, Social and Health Impact Assessment is also progressing well and we look forward to updating the market as we progress the feasibility study through 2019, starting with the resource update in the first quarter."

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Mon, 03 Dec 2018 08:18:00 -0500 https://ca.proactiveinvestors.com/companies/news/210370/mkango-resources-sees-highest-rare-earth-grades-to-date-at-songwe-hill-210370.html
<![CDATA[RNS press release - MKANGO INTERSECTS HIGHEST GRADES TO DATE ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181203070004_13887913/ Mon, 03 Dec 2018 02:00:04 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181203070004_13887913/ <![CDATA[RNS press release - MKANGO ANNOUNCES Q3 2018 RESULTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181128070002_13882673/ Wed, 28 Nov 2018 02:00:02 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181128070002_13882673/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181126143004_13880641/ Mon, 26 Nov 2018 09:30:04 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181126143004_13880641/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181116161503_13870727/ Fri, 16 Nov 2018 11:15:03 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181116161503_13870727/ <![CDATA[News - Mkango Resources releases latest drilling results from Songwe Hill project ]]> https://ca.proactiveinvestors.com/companies/news/208697/mkango-resources-releases-latest-drilling-results-from-songwe-hill-project-208697.html Mkango Resources Ltd (LON:MKA) has released the results of a 45 drill hole campaign from its Songwe Hill Rare Earths project in Malawi.

The AIM-listed exploration firm said the drilling programme was a key component of the ongoing initial phases of its feasibility study for Songwe.

READ: Mkango Resources receives more encouraging assays from drilling at Songwe Hill

Mkango added that 39 of the holes had intersected “significant zones of rare earths mineralisation” grading above 1% total rare earth oxides (TREO).

Highlights from the results included:

• PX056 - 114.8m grading 1.6% TREO (60.7 - 175.5m) including 30.0m grading 2.0% TREO (135.0 -  165.0m). Inclined hole (60 degrees west)
• PX059 - 63.0m grading 1.7% TREO (6.0 - 69.0m), including 23.0m grading 2.3% TREO (7.0 -  30.0m), and 15.4m grading 1.6% TREO (128.0 - 143.4m). Inclined hole (60 degrees west)
• PX073 - 67.1m grading 1.6% TREO (8.8 - 75.9m) including 25.2m grading 2.0% TREO (45.0 - 70.2m). Inclined hole (60 degrees west)
• PX076 - 40.2m grading 1.8% TREO (60.4 - 100.7m) including 20.0m grading 2.4% TREO (60.4 - 80.4m). Inclined hole (60 degrees west)
• PX077 - 51.9m grading 1.7% TREO (26.2 - 78.0m). Inclined hole (60 degrees west)
• PX090 - 25.7m grading 3.9% TREO (39.5 - 65.2m). Inclined hole (60 degrees west)
• PX098 - 65.0m grading 1.7% TREO (1.1 - 66.0m) and 13.1m grading 1.2% TREO (115.0 - 128.1m). Inclined hole (60 degrees south)
• PX103 - 165.2m grading 1.6% TREO (2.6 - 167.8m). Inclined hole (60 degrees east)
• PX107 - 91.3m grading 1.3% TREO (23.0 - 114.2m) including 32.2m grading 1.9% TREO (82.0 - 114.2m). Inclined hole (60 degrees east)
• PX108 - 45.8m grading 1.4% TREO (8.2 - 54.0m) and 57.3m grading 1.7% TREO (76.9 - 134.2m). Inclined hole (60 degrees east)
• PX113 - 51.1m grading 2.2% TREO (4.7 - 55.8m). Inclined hole (50 degrees north)

William Dawes, chief executive of Mkango, said the results demonstrated “broad mineralised zones with continuity of mineralisation” which would underpin a resource update.

He added that the feasibility study for Songwe would be the main focus for 2019, with Mkango’s strategic partner Talaxis to invest £7mln following the resource update and the publication of the NI 43-101 technical report in the first quarter of next year.

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Wed, 07 Nov 2018 07:30:00 -0500 https://ca.proactiveinvestors.com/companies/news/208697/mkango-resources-releases-latest-drilling-results-from-songwe-hill-project-208697.html
<![CDATA[RNS press release - MKANGO ANNOUNCES LATEST DRILL RESULTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181107070003_13857527/ Wed, 07 Nov 2018 02:00:03 -0500 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181107070003_13857527/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181019143002_13836085/ Fri, 19 Oct 2018 09:30:02 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181019143002_13836085/ <![CDATA[News - Read-across from Talaxis investment suggests Mkango is trading at a significant discount, says SP Angel ]]> https://ca.proactiveinvestors.com/companies/news/206388/read-across-from-talaxis-investment-suggests-mkango-is-trading-at-a-significant-discount-says-sp-angel-206388.html According to the US Geological Survey, China accounts for around 79% of the world’s rare earth production. That’s as far as can be ascertained, because much of Chinese production is opaque and hard to quantify.

Either way, such an imbalance in global production at a time when trade war rhetoric against the Chinese is rapidly being converted into hard tariffs, is likely to favour significant rare earths operations in jurisdictions outside of China.

READ: Mkango Resources receives more encouraging assays from drilling at Songwe Hill

Mkango Resources Ltd (LON:MKA) has one such project, the Songwe Hill operation in Malawi. This project is moving rapidly towards a production decision, helped along by a significant investment at the project level from major commodities trader Talaxis.

This Talaxis investment is interesting in several ways. First, there’s every likelihood that Talaxis will follow its money when a production decision is made, meaning that for Mkango, financing Songwe Hill could be pretty straightforward.

But perhaps even more interesting in the immediate term is the implied value that the Talaxis investment puts on the project.

So far, Talaxis has committed £12mln at the project level, with a view to supporting further exploration and to hitting certain development milestones.

That investment as it stands will net out at a 49% interest for Talaxis once the project is taken through the bankable feasibility stage. When an additional investment into a downstream processing operation with Metalysis is taken into consideration, the overall implied valuation for Songwe Hill runs to a tidy enough £28.6mln.

And that, in turn, means that the interest in Songwe Hills that Mkango retains is worth 13.4p per share, according to calculations made by broker SP Angel. That’s a chunky 34% premium on the current 8.8p share price.

But there’s more.

The Talaxis agreement also has a built-in option for the commodity giant to up its stake in Songwe Hill to 75%, on the condition that it sources project finance.

READ: Mkango Resources adds to board as pace quickens at Songwe Hill

That outcome would give Mkango a 25% free carry on a 500,000 tonnes per year operation with a net present value of between US$137mln and more than US$440mln, depending on which inputs you use.

SP Angel though, reckons that if it exercises its option, Talaxis’s total commitment would amount to £176mln, and that the valuation read-across for Songwe Hill, allowing for the 25% that Mkango would retain, amounts to £235mln.

That, in turn, nets out at a total valuation of £58.7mln for Mkango’s stake, or 53.9p per share.

With the rare earth markets continuing in bullish mode, given the context of new technologies in electric vehicles and elsewhere, the opportunity on offer here for investors is clearly significant.

Project financing is expected to be in place late in 2019 or early in 2020, at which point, if SP Angel’s forecasts are borne out, the share price should be significantly higher.

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Thu, 04 Oct 2018 12:52:00 -0400 https://ca.proactiveinvestors.com/companies/news/206388/read-across-from-talaxis-investment-suggests-mkango-is-trading-at-a-significant-discount-says-sp-angel-206388.html
<![CDATA[RNS press release - MKANGO ANNOUNCES RESULTS OF AGM ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181002173001_13813873/ Tue, 02 Oct 2018 12:30:01 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20181002173001_13813873/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180927143001_13807503/ Thu, 27 Sep 2018 09:30:01 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180927143001_13807503/ <![CDATA[News - Mkango Resources receives more encouraging assays from drilling at Songwe Hill ]]> https://ca.proactiveinvestors.com/companies/news/205314/mkango-resources-receives-more-encouraging-assays-from-drilling-at-songwe-hill-205314.html Mkango Resources Ltd (LON:MKA) has received another batch of encouraging assay results from its Songwe Hill development in Malawi.

All nine drill holes intersected rare earth mineralisation, with grades in the best five holes up to 2.8% rare earth metals over widths of up to and over 30m.

READ: Mkango Resources adds to board as pace quickens at Songwe Hill

Mkango recently completed a 10,900m drill programme to formulate a mine plan as part of a feasibility study for the project.

William Dawes, chief executive, said four of the holes drilled were step-outs to test how far the deposit might expand to the north-west.

Assays are due from a further 66 drill holes totalling 8,396m.

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Thu, 20 Sep 2018 09:05:00 -0400 https://ca.proactiveinvestors.com/companies/news/205314/mkango-resources-receives-more-encouraging-assays-from-drilling-at-songwe-hill-205314.html
<![CDATA[RNS press release - MKANGO ANNOUNCES LATEST DRILL RESULTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180920070004_13797460/ Thu, 20 Sep 2018 02:00:04 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180920070004_13797460/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180918070019_13794054/ Tue, 18 Sep 2018 02:00:19 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180918070019_13794054/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180917143003_13793527/ Mon, 17 Sep 2018 09:30:03 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180917143003_13793527/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180914141540_13791797/ Fri, 14 Sep 2018 09:15:40 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180914141540_13791797/ <![CDATA[RNS press release - MKANGO ANNOUNCES DIRECTOR DEALINGS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180912070006_13787291/ Wed, 12 Sep 2018 02:00:06 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180912070006_13787291/ <![CDATA[News - Mkango completes major drilling programme at Songwe Hill ]]> https://ca.proactiveinvestors.com/companies/news/204600/mkango-completes-major-drilling-programme-at-songwe-hill-204600.html Mkango Resources Ltd (LON:MKA)(CVE:MKA) shares rose on Tuesday as the miner announced that it has completed a major drilling programme at the Songwe Hill rare-earths project in Malawi. The drilling programme totalled 10,891 metres and comprised 91 drill holes to a maximum depth of 220 metres. 

The drilling programme is a key component of the ongoing initial phases of the Feasibility Study for Songwe.

WATCH: Mkango reports 'excellent first set of results' from drilling at Songwe Hill

Highlights from the results include 51.6 metres grading 1.9% total rare earth oxides, 161 metres grading 1.3 TREO and 43.4 metres grading 1.6% TREO.

 "We are very pleased to announce another excellent set of results from the recently completed major drill programme at Songwe, which is an integral part of the ongoing feasibility study,” said chief executive William Dawes.

“This is the largest drill programme to date in the history of the project and its successful completion is a great credit to the strong international and Malawian team on the ground. We look forward to announcing results from the remaining 75 drill holes totalling 9,259 metres."

In mid-morning trading, Mkango shares were 4.2% higher at 8.75p. 

 -- Adds share price --

 

 

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Tue, 11 Sep 2018 07:43:00 -0400 https://ca.proactiveinvestors.com/companies/news/204600/mkango-completes-major-drilling-programme-at-songwe-hill-204600.html
<![CDATA[RNS press release - MKANGO COMPLETES MAJOR DRILLING PROGRAMME ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180911070009_13785524/ Tue, 11 Sep 2018 02:00:09 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180911070009_13785524/ <![CDATA[RNS press release - MKANGO ANNOUNCES EXERCISE OF WARRANTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180906070003_13780529/ Thu, 06 Sep 2018 02:00:03 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180906070003_13780529/ <![CDATA[RNS press release - MKANGO ANNOUNCES ISSUE OF OPTIONS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180831070003_13773774/ Fri, 31 Aug 2018 02:00:03 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180831070003_13773774/ <![CDATA[News - Mkango Resources adds to board as pace quickens at Songwe Hill ]]> https://ca.proactiveinvestors.com/companies/news/203763/mkango-resources-adds-to-board-as-pace-quickens-at-songwe-hill-203763.html Rare-earths project developer Mkango Resources Ltd (LON:MKA) has re-jigged its board with the appointment of three new non-executive directors while two are stepping down.

The three non-execs joining are finance and investor relations experts. Susan Muir has spent thirty-years in mining capital markets including most recently as investor relations vice president at gold miner Barrick. Sandra Du Toit is currently executive vice president with Standard Bank in South Africa, while Shaun Treacy is chief investment officer for private equity firm Arete Capital having worked at numerous investment banks.

Company secretary David Berg and another non-exec, Eugene Chen, will not stand for re-election at October’s AGM. Derek Linfield, the chairman, said the new directors broaden the company's international footprint and global network, following the transaction with Talaxis at the end of 2017.

Feasibility study

Talaxis, part of the Noble Group, will invest £12mln to fund a feasibility study at Songwe Hill in Malawi in return for a 49% stake in the rare-earths project. If it agrees to further funding Talaxis has an option to increase its stake in the project to 75%.

Mkango posted a loss of US$1.77mln (US$263,000) in the three months to June as it ramped up activity at Songwe Hill.

 

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Wed, 29 Aug 2018 07:59:00 -0400 https://ca.proactiveinvestors.com/companies/news/203763/mkango-resources-adds-to-board-as-pace-quickens-at-songwe-hill-203763.html
<![CDATA[RNS press release - MKANGO ANNOUNCES BOARD CHANGES AND Q2 2018 RESULTS ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180829070004_13770530/ Wed, 29 Aug 2018 02:00:04 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180829070004_13770530/ <![CDATA[RNS press release - Holding(s) in Company ]]> https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180824120908_13767870/ Fri, 24 Aug 2018 07:09:08 -0400 https://ca.proactiveinvestors.com/companies/rns/6737/LSE20180824120908_13767870/ <![CDATA[Media files - Mkango reports 'excellent first set of results' from drilling at Songwe Hill ]]> https://ca.proactiveinvestors.com/companies/stocktube/10185/mkango-reports-excellent-first-set-of-results-from-drilling-at-songwe-hill-10185.html Tue, 21 Aug 2018 08:46:00 -0400 https://ca.proactiveinvestors.com/companies/stocktube/10185/mkango-reports-excellent-first-set-of-results-from-drilling-at-songwe-hill-10185.html