Mkango Provides Update On Songwe Hill Rare Earths Project And Thambani Uranium-Tantalum-Niobium Project In Malawi
London / Vancouver: August 19, 2019 - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango"), is pleased to provide an update on the Songwe Hill rare earths project and Thambani uranium-tantalum-niobium project in Malawi.
The feasibility study for the Songwe Hill Rare Earths project continues to progress, fully funded by strategic partner, Talaxis Limited, a subsidiary of Noble Group.
Mkango is pleased to confirm that the recently shipped 60 tonne bulk rock sample for mineral processing and metallurgical pilot test work studies has now arrived into Fremantle Port in Western Australia. Optimisation of the mineral processing flowsheet continues to progress well and we look forward to updating shareholders further in due course.
On August 7th, Mkango welcomed the recently appointed Honourable Minister of Natural Resources, Energy and Mining, the Honourable Binton Kutsaira, Deputy Minister Mungasulwa Mwambande and Chief Director Oliver Kambambe, leading a large government delegation visiting the Songwe Hill rare earths project and local corporate social responsibility initiatives.
Honourable Binton Kutsaira, Minister of Natural Resources, Energy and Mining for Malawi, said "I am overwhelmed with the progress being made by Mkango Resources at the Songwe Hill Rare Earths exploration project in Phalombe District. I commend Mkango for being exemplary in the field of Corporate Social Responsibility and for being transparent with all stakeholders regarding its operations, as it continues to fast track its Rare Earth mineral exploration and bankable feasibility studies. The advancement of the Songwe Hill project offers real hope to the nation of Malawi that it will have a producing rare earths mine in the near future. The government of Malawi is 100% committed to supporting investors in the mining sector such as Mkango Resources Limited, as mining is a priority on the government's agenda of transforming the economy of the Malawi."
Alexander Lemon, President of Mkango, said: "We believe that the Songwe Rare Earths project will be transformational for the Nation of Malawi, enabling it to become an important sustainable producer of Rare Earth Elements which are so necessary for the efficient future electrification of transport systems and renewable energy such as direct drive wind turbines, as well as many other hi-tech applications. At the same time empowering local communities and validating Malawi's credentials as one of Africa's premier investment destinations. We are very appreciative of the support received from the Government of Malawi and all stakeholders as we develop the project through its Definitive Feasibility Study."
Mkango's Chief Geologist, Dr Paul Armitage, and a team of 5 geologists with logistical support are currently carrying out a detailed exploration work programme in the Thambani exclusive prospecting license, which features multiple zones of nepheline-syenite-hosted uranium, tantalum and niobium mineralization, with a number of extensive uranium radiometric anomalies.
The programme is following up on the previous Mkango exploration results and includes further ground truthing of radiometric anomalies, rock sampling on outcrop, and collection of samples from new trenches. In parallel, Mkango are continuing to evaluate partnership opportunities for the project.
All costs associated with the work programme are being covered out of existing cash resources and further updates will be provided on Thambani in due course.
For more information, please visit www.mkango.ca
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Certain information contained in this announcement may have been deemed inside information for the purposes of Article 7 of Regulation (EU) No 596/2014 until the release of this announcement.
About Mkango Resources Limited
Mkango's primary business is exploration for 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: the Phalombe licence, the Thambani licence, the Chimimbe Hill and Mchinji licences.
The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration 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 10,900 metre drilling programme and an updated mineral resource estimate, announced in February 2019. In March 2019, the Company announced receipt of a £7 million (C$12.3 million) investment from Talaxis to fund completion of the Feasibility Study. Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development including funding the equity component thereof.
The main exploration targets in Mkango's remaining two 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon and, in the Chimimbe Hill licence, nickel and cobalt.
For more information, please visit www.mkango.ca
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements (within the meaning of that term under applicable securities laws) with respect to Mkango, its business and the Project. Generally, forward looking statements can be identified by the use of words such as "plans", "expects" or "is expected", "scheduled", "estimates" "intends", "anticipates", "believes", or variations of such words and phrases, or statements that certain actions, events or results "can", "may", "could", "would", "should", "might" or "will", occur or be achieved, or the negative connotations thereof. Forward looking statements in this news release include statements with respect to the global market for products using the rare earth metals the Company is exploring for, completion of the feasibility study and of the transactions contemplated in the agreement with Talaxis, as well as the use of proceeds from the investments into the Company by Talaxis and the timing of such expenditures. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Such factors and risks include, without limiting the foregoing, market demand for the metals and associated downstream products for which Mkango is exploring, researching and developing, the positive results of a feasibility study on the Project, delays in obtaining financing or governmental or stock exchange approvals. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
For further information on Mkango, please contact:
Mkango Resources Limited
Chief Executive Officer
UK: +44 207 3722 744
Canada: +1 403 444 5979
Financial Public Relations
Tim Blythe, Camilla Horsfall, Julia Tilley
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470
Alternative Resource Capital
Alex Wood, Rob Collins
UK: +44 20 7186 9004; +44 20 7186 9001
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This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other securities of the Company in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") and may not be offered or sold within the United States to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.