Mkango Resources Ltd. Announces Appointment of Investor Relations Firm
Calgary, Alberta: June 27th, 2011 - Mkango Resources Ltd. (TSXV-MKA) (the "Corporation" or "Mkango") is pleased to announce that it has entered into an investor relations consulting agreement, effective June 16, 2011, with San Diego Torrey Hills Capital, Inc ("Torrey Hills").
California-based Torrey Hills is a corporate finance and investor relations advisory firm specializing in the development of emerging growth companies, with operations in Del Mar, California and Boston, Massachusetts. They represent privately-held and publicly-traded companies throughout the United States and Canada.
The services provided by Torrey Hills encompass building and maintaining an informed investor audience for the Corporation for distribution of press releases and company updates, increasing awareness about the Corporation through access to established relationships with investment professionals and co-ordinating conference calls and scheduling road show meetings.
Torrey Hills' agreement provides for a monthly consulting fee of US$7,500 and the issuance of 150,000 incentive stock options exercisable for a three-year period at a strike price of C$0.65 per share. The options are subject to the approval of the TSX Venture Exchange and are subject to the Corporation's incentive stock option plan. The options will vest according to the following schedule: 25% immediately; 25% at the three month anniversary of the signing of the agreement; 25% at the six month anniversary of the signing of the agreement; and 25% at the nine month anniversary of the signing of the agreement. The investor relations agreement is for an initial term of one year, with a thirty-day notice of termination provision at any time by either party. If the agreement is terminated by either party within six months from the data of signing, Torrey Hills will return the options (whether vested or not) on a pro rata basis over the twelve month period.
Mkango Resources Ltd.
Mkango's primary business is the exploration for rare earth elements and associated minerals in the Republic of Malawi. It holds, through its wholly owned subsidiary Lancaster, a 100% interest in two exclusive prospecting licenses covering a combined area of 1,751 km_ in southern Malawi. The main exploration target is the Songwe Hill rare earth deposit, which features carbonatite hosted rare earth mineralization and was subject to previous exploration programs in the late 1980s.
The Corporation's corporate strategy is to further delineate the rare earth mineralization at Songwe Hill and secure additional rare earth element and other mineral opportunities in Malawi and elsewhere in Africa.
For further information, please contact:
Mkango Resources Ltd.
Office +1 (403) 444 - 5979
Fax +1 (403) 351 - 1703
Chief Executive Officer
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements relating to the Corporation. 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.
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 Corporation disclaims any intention and assume 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 securities law. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
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.