Mkango Resources Ltd.
TSX VENTURE : MKA
AIM : MKA

Mkango Resources Ltd.

June 22, 2016 09:15 ET

Mkango Announces that it is Acquiring New High Resolution Airborne Geophysical Data Covering its Licences in Malawi

CALGARY, ALBERTA--(Marketwired - June 22, 2016) - Mkango Resources Ltd. (TSX VENTURE:MKA)(AIM:MKA) (the "Corporation" or "Mkango"), is pleased to announce that it is in the process of acquiring from the Malawi Geological Survey new airborne geophysical data covering the majority of its Phalombe and Thambani exclusive prospecting licences in Malawi.

The nationwide airborne geophysical survey was part of a US$25 million World Bank funded project. The airborne geophysical component of the project comprised the following:

  • High resolution airborne geophysics flown at 250 metre spacing
  • Uranium, potassium and thorium radiometric surveys
  • Magnetic survey
  • Gravity survey
  • Raw data production

On 15th June 2016, Hon Bright Msaka SC, Malawi's Minister for Natural Resources, Energy and Mining launched the five-year Geological Mapping and Mineral Assessment Project (GEMMAP) in Lilongwe, which encompasses ground truthing of the aforementioned airborne geophysical survey.

The Government of France is supporting the project, which aims to acquire geo-scientific and mineral occurrence data to be used to promote and maximise the mining sector's contribution to the country's socio-economic development.

Malawi was last mapped in the 1950s and 1960s using aerial photography with very limited follow up ground work. GEMMAP will be implemented by a consortium of the Malawian Geological Survey, French Geological Survey (BRGM), Council for Geosciences of South Africa and the Geological Survey of Finland (GTK).

Alexander Lemon, President of Mkango, stated:

"We believe GEMMAP will significantly enhance Malawi's credentials as an investment destination for exploration and mining and we look forward to spearheading development of the sector, working closely with the Government of Malawi. Auspiciously, GEMMAP was launched on the same day as Mkango's very successful listing on AIM."

Furthermore, we are excited to be acquiring the new airborne geophysical data covering the majority of the Phalombe and Thambani licences in Malawi, which have excellent potential for rare earths and uranium, respectively. We look forward to providing the market with further updates."

About Mkango Resources Ltd.

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 main exploration target in the Phalombe licence is the Songwe Hill rare earth deposit, which features carbonatite hosted rare earth mineralisation and was subject to previous exploration in the late 1980s and for which Mkango completed an updated Pre-feasibility study in November 2015.

The main exploration target in the Thambani licence is a uranium, niobium and tantalum prospect. In January 2015, Mkango announced the first set of assay results of 142 soil and rock chip samples from 9 trenches, which returned variably anomalous uranium, niobium and tantalum values in most trenches, ranging up to 4.70 % U3O8, 3.25 % Nb2O5 in soil and up to 0.42 % U3O8, 0.78 % Nb2O5 and 972 ppm Ta2O5 in rock chips.

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 Corporation 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 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.

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 Corporation in the United States. The securities of the Corporation 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.

Contact Information

  • Mkango Resources Limited
    William Dawes
    Chief Executive Officer
    UK: +44 207 3722 744
    Canada: +1 403 444 5979
    will@mkango.ca

    Mkango Resources Limited
    Alexander Lemon
    alex@mkango.ca

    SP Angel Corporate Finance LLP
    Nominated Adviser and Broker
    Jeff Keating
    UK: +44 20 3470 0470