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Tuesday, 26 February 2013
Mkango Resources agrees new funding for Songwe prefeasibility
Mkango Resources (CVE:MKA) today told investors that it has agreed funding arrangements which could see the firm raise up to C$2 mln.
The new cash is being earmarked for programmes that will help move the Songwe rare earth project through the pre-feasibility stage of it development. This will include metallurgical test work, mine planning and environmental studies.
Initially it is raising C$750,000 through the issue of new shares to Leo Mining and Exploration (Leominex), which is a company associated with chief executive William Dawes.
Leominex is subscribing for 4.285 mln new units, comprising one share and a half warrant, priced at C$0.175 each. Each whole warrant will convert to new shares at a price of C$0.35 within the first year following the placing.
A further 7.144 mln units will be offered to investors on the same terms.
“Mkango's first fund raising in January 2011 enabled definition of a large maiden Indicated and Inferred resource at Songwe,” said chief executive William Dawes.
“The proceeds from Mkango's second fund raising announced today will be focused on moving the Songwe project through the pre-feasibility stage in parallel with regional exploration for ion adsorption clay hosted rare earth deposits.
“Given the significant Indicated resource already defined at Songwe, no further drilling is anticipated in the near term to support the pre-feasibility study."