Mkango Resources Ltd.: Management Raises Capital through Private Placement
London, UK and Vancouver, BC, March 13, 2025 – Mkango Resources Ltd. (AIM:MKA)(TSX-V:MKA) (“Mkango” or the “Company”), a leading mineral exploration and development company, is pleased to announce the successful completion of a private placement (the “Private Placement”) to raise gross proceeds of £6,351,212 (approximately C$11,713,435, using the Bank of Canada exchange rate as of closing on 12 March 2025 of £1:C$1.8649).
Details of the Private Placement
The Private Placement involved the issuance of 577,271 common shares of the Company at a price per Placement Share of 11 pence (“p”) (approximately C$0.205). The Placement Shares will be subject to a four-month and one day hold period under applicable securities laws.
Use of Proceeds
The net proceeds from the Private Placement will be used to advance the Company’s rare earth element (“REE”) projects in Southern Malawi, including the development of the Songwe Hill Rare Earths Project. The Company will also use the proceeds to expand its exploration activities and for general working capital purposes.
Impact on Mkango
The successful completion of the Private Placement provides Mkango with the necessary capital to further advance its REE projects in Malawi. With the global demand for REEs continuing to grow due to their increasing use in high-tech applications, such as electric vehicles and renewable energy technologies, Mkango is well-positioned to capitalize on this trend. The funds raised from the Private Placement will enable the Company to accelerate its exploration and development activities at Songwe Hill and other projects, potentially leading to increased shareholder value.
Impact on the World
The global REE market is expected to grow significantly in the coming years, driven by the increasing demand for high-tech applications. According to a report by Grand View Research, the global REE market size was valued at USD 14.6 billion in 2019 and is expected to grow at a compound annual growth rate (CAGR) of 6.3% from 2020 to 2027. This growth is largely due to the increasing demand for electric vehicles and renewable energy technologies, which rely heavily on REEs.
Mkango’s Songwe Hill Rare Earths Project is one of the largest undeveloped REE deposits globally, with an indicated resource of 12.7 million tonnes of REEs containing 23.4% total rare earth oxides (“TREO”). The successful development of this project could significantly contribute to the global supply of REEs, helping to reduce the world’s reliance on China, which currently dominates the global REE market.
Conclusion
Mkango Resources Ltd.’s successful completion of the Private Placement is a significant step forward for the Company as it looks to advance its REE projects in Malawi and capitalize on the growing demand for REEs. With the proceeds from the Private Placement, Mkango will be able to accelerate its exploration and development activities, potentially leading to increased shareholder value. Furthermore, the successful development of the Songwe Hill Rare Earths Project could contribute significantly to the global supply of REEs, helping to reduce the world’s reliance on China and promote greater diversity in the global REE market.
- Mkango Resources Ltd. announces the successful completion of a private placement, raising gross proceeds of £6,351,212 (approximately C$11,713,435)
- 577,271 common shares of the Company were issued at a price per Placement Share of 11 pence (“p”) (approximately C$0.205)
- Proceeds will be used to advance REE projects in Malawi and for general working capital purposes
- Global REE market expected to grow significantly due to increasing demand for high-tech applications
- Mkango’s Songwe Hill Rare Earths Project is one of the largest undeveloped REE deposits globally
- Successful development of Songwe Hill could contribute significantly to the global supply of REEs
