Mkango Commences Feasibility Study for Songwe Hill Rare Earths Project

Mkango Resources Ltd. (TSXV:MKA) announced that investments totalling C$10.5 million have been received by its subsidiaries and will commences a feasibility study for the Songwe hill rare earths project in Malawi.
Highlights are as follows:

• Talaxis has invested £5 million (C$8.8 million) into Mkango subsidiary, Lancaster Exploration Limited (“Lancaster”), in return for a 20% interest in Lancaster. Lancaster holds the licence for the advanced stage Songwe Hill rare earths project (“Songwe”) in Malawi.
• The investment into Lancaster will fund the initial phase of the Feasibility Study for Songwe, including an extensive drilling programme starting in the second quarter of 2018, in parallel with ongoing processing flow sheet optimisation and work in relation to the Environmental, Social and Health Impact Assessment.
• Talaxis has also invested £1 million (C$1.8million) into a new Mkango subsidiary, Maginito Limited (“Maginito”), in return for a 24.5% interest in Maginito.
• Maginito is focused on neodymium alloy powders, magnet and other technologies relating to electric vehicles and other cleantech applications. This includes the collaboration with Metalysis Ltd announced in September 2017, which is focused on advanced alloys using neodymium or praseodymium with other elements for permanent magnet manufacturing.
• On Mkango publishing an updated resource (compliant with NI 43-101 – Standards of Disclosure for Mineral Projects), Talaxis will invest £7 million (C$12.3 million) into Lancaster for a further 29% interest, increasing its total interest in Lancaster to 49%. This will fund further expenditure in relation to completion of the feasibility study.
• On successful completion of the Phase II R&D programme with Metalysis, Talaxis will invest £1 million (C$1.8 million) into Maginito for a further 24.5% interest, increasing its total interest in Maginito to 49%.
• Upon completion of the feasibility study for Songwe, and subject to completion of the definitive documentation, Talaxis will have the option to acquire a further 26% interest in Lancaster, increasing its aggregate interest to 75%, by arranging funding for 100% of remaining project development costs, including funding the equity component thereof. If Talaxis exercises its option, Mkango will retain a 25% interest, free carried to production.

William Dawes, CEO of Mkango, commented:

Following receipt of the investment from Talaxis, Mkango is uniquely positioned. We are one of very few companies with an advanced stage rare earths project fully funded to completion of a Feasibility Study with a clearly defined development pathway to production. This is complemented by downstream growth opportunities focused on the electric vehicle technology space. We look forward to working with Talaxis as well as the Government and people of Malawi as we move the project through the development phase to become a leading sustainable producer of rare earths.

Click here to read the full Mkango Resources Ltd. (TSXV:MKA) press release.