Mkango Resources Corporate Update
Calgary, Alberta: March 1, 2017 - Mkango Resources Ltd. (TSXV / AIM: MKA) (the "Company" or "Mkango") is pleased to provide a corporate update.
March 2017 Work Programme
Following the collaboration agreement signed with Noble Resources International ("Noble") and £450,000 placing in December 2016, Mkango has completed preparatory work in relation to the advanced stage Songwe Hill rare earths project ("Songwe") and the Thambani uranium project, with the following work programme planned for March:
- Exploration to commence on the Thambani uranium project as discussed in the press release announced on 2 February 2017;
- Processing test work to commence in South Africa focused on improving the flotation and hydrometallurgical portions of the flow sheet for Songwe, thereby potentially lowering operating costs;
- Ongoing flotation research at Camborne School of Mines as part of SoS Rare (http://www.bgs.ac.uk/SoSRARE/?src=topNav); and
- Continued evaluation of new growth opportunities in the rare earths and green technology metal space.
The Mkango executive team will be in Asia late March focused on developing future partnership opportunities, and will also be participating in the 7th China Rare Earths Market Conference in Ganzhou, China on 22-24 March 2017.
Appointment of Blytheweigh
Mkango is pleased to announce that it has appointed Blytheweigh as its financial public relations and investor relations consultant, effective March 1, 2017. Blytheweigh is a London and Johannesburg based specialist financial public relations and investor relations agency with a focus on small to mid-cap listed companies. The agreement with Blytheweigh provides for a monthly fee of £2,000 per month and runs for an initial term of 6 months with a thirty-day notice of termination provision. Blytheweigh does not have any direct or indirect interest in Mkango or its securities and no incentive stock options have been granted to Blytheweigh. Information on Blytheweigh can be found at www.blytheweigh.com
William Dawes, Chief Executive of Mkango, stated:
"We are entering an exciting time for Mkango, as we kick off the next phase of work for the Songwe Hill rare earths project and Thambani uranium project, two commodities with strong outlooks. Mkango, with one of the few advanced stage rare earths projects outside China as well as the recently announced collaboration with Noble Group, one of the world's largest commodity traders, is therefore well positioned as the recovery in the rare earths sector gathers momentum. We look forward to working with Blytheweigh during this transformational period.
Growth in electric vehicle demand and other green technologies will have a huge impact on the rare earths sector. For example, BHP Billiton and BP are forecasting that there will be 140 million and 100 million electric vehicles by 2035, respectively, versus around 1 million today. This would require multiple new sources of rare earths supply to meet demand. Similarly, a European Union report recently concluded that the European Union is vulnerable to supply bottlenecks of rare earths used in electric vehicles and wind power, more so than, for example, lithium."
About Mkango Resources Limited
Mkango's primary business is the 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." Mkango holds, through its wholly owned subsidiary Lancaster Exploration Limited, a 100% interest in two exclusive prospecting licenses in southern Malawi, the Phalombe licence and the Thambani licence.
The main exploration target in the Phalombe licence is the Songwe Hill rare earths' deposit, which 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. Mkango's strategy for Songwe is to further optimise the project with a view to maximising efficiency and reducing costs, thereby providing a strong platform for entering into partnerships, marketing and offtake arrangements. The main exploration targets in the Thambani licence are uranium, niobium, tantalum and other associated minerals.
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements. 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, delays in obtaining financing or governmental or stock exchange approvals. The forward-looking statements contained in this press release are made as of the date of this press 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, Nick Elwes
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Broker
Jeff Keating , Caroline Rowe
UK: +44 20 3470 0470
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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.