Mkango Resources Ltd. (TSX-V/AIM: MKA) is a Canadian dual listed mineral exploration and development company on the UK and Canadian stock exchanges. Mkango is focussed on rare earth elements and associated minerals in the Republic of Malawi, a country whose hospitable people have earned it a reputation as “the warm heart of Africa”. The Company holds interests in four exclusive prospecting licences in Malawi: Phalombe, Thambani, Chimimbe Hill, and Mchinji.
The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit, which features carbonatite-hosted rare earth mineralisation. Previous exploration was conducted in the late 1980s. Mkango completed an updated Pre-Feasibility Study for the project in November 2015 and a Feasibility Study is currently underway, the initial phases of which included a major 10,900 m diamond drilling programme completed in 2018.
Under the terms of an agreement with Talaxis, Talaxis has fully funded the Feasibility Study for Songwe by investing £12 million for a 49% interest in the project (via Mkango subsidiary Lancaster Exploration Ltd). Talaxis will also have the option to acquire a further 26% interest by arranging funding for project development including the equity component. If Talaxis exercises its option, Mkango will retain a 25% interest, free carried to production. To date, Talaxis has invested £12 million, which is funding the Feasibility Study, for a 49% interest in the project with Mkango holding 51%.
By investing a further £2 million, Talaxis will acquire a 49% interest in Maginito Ltd, a new subsidiary of Mkango focused on neodymium alloy powders, magnets and other technologies. 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. Permanent magnets are critical materials for most electric vehicles, direct drive wind turbines and many other high growth applications. Neodymium is a key rare earth component at Songwe. To date, Talaxis has invested £1 million for a 24.5% interest in Maginito with Mkango holding 75.5%.
The main exploration targets in Mkango’s remaining three 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon, in the Chimimbe Hill licence, nickel and cobalt, and in the Mchinji licence, gold, nickel, cobalt and graphite.
Talaxis is focused on resources critical to green technology supply chains.
- Talaxis have invested £12 million in Songwe Hill, fully funding the BFS, in return for a 49% interest
- Extensive trading and distribution network throughout Asia and Rest of World
- On completion of BFS, Talaxis has option to increase its interest in Songwe to 75% by arranging funding for 100% of project development costs including funding the equity portion thereof
- Talaxis to invest £2 million into Magnito in two tranches for 49% interest. First £1 million invested in January 2018 (for a 24.5% interest).