CALGARY, AB--(Marketwired - Dec 19, 2016) - Mkango Resources Limited (TSX VENTURE: MKA) (LSE: MKA)
(TSXV / AIM: MKA)
MKANGO RESOURCES LTD.
706 27 Avenue NW,
Calgary, Alberta T2M 2J3
MKANGO ENTERS INTO AGREEMENT WITH NOBLE TO COLLABORATE IN THE RARE EARTHS SECTOR AND RAISES £450,000 IN CONNECTION WITH THE TRANSACTION
THIS NEWS RELEASE IS NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES
Calgary, Alberta: December 19, 2016 - Mkango Resources Ltd. (TSXV / AIM: MKA) (the "Company" or "Mkango"), is pleased to announce that it has entered into a collaboration agreement (the "Agreement") with Noble Resources International ("Noble"), which will also allow Noble to acquire up to a 12.5% interest in Mkango.
Noble is one of world's largest commodity traders and the largest in Asia, with a presence throughout the region. It is listed on the Singapore Stock Exchange with a market capitalization of approximately US$1.5 billion.
Under the key terms of the Agreement, Noble will provide the following services to Mkango:
- Identifying the optimal markets and counterparties for Mkango's future rare earths production from the Songwe Hill rare earths project (the "Project") in Malawi, during the bankable feasibility study and in advance of mine development;
- Identifying the best strategy for the Project's product mix given the international market for different rare earths concentrates and separated rare earths oxides, and advising Mkango on the way forward;
- Identifying the optimal logistics route to take the Project's production to market;
- Introductions to potential strategic partners to finance development of the Project; and
- Assistance in market-related discussions with key stakeholders, including Mkango's financial, technical and legal advisers, prospective investors and lenders and relevant government agencies associated with the Project.
Noble will also have the right to negotiate a marketing services agreement for rare earths produced by the Project.
In connection with the Agreement, Mkango will, subject to regulatory approval, issue 12 million common share purchase warrants ("Warrant") to Noble, aligning Noble's interests with those of Mkango's shareholders. Each whole Warrant will entitle Noble to acquire one common share of the Company at a price of 6.6 pence for a period of two years following the date of the Agreement. The Warrants give Noble the right to acquire up to a 12.5% interest in Mkango.
Click on, or paste the following link into your web browser, to view the associated PDF document.
This information is provided by RNS
The company news service from the London Stock Exchange