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Mkango and CoTec to Collaborate in Downstream Rare Earth Technologies with Proposed Investments Totalling £3.5 Million (C$5.6Million)
Highlights Mkango has signed a non-binding term sheet with CoTec Holdings Corp. ("CoTec...
About this update from Cotec Holdings Corp
[{"type":"text","content":"Mkango and CoTec to Collaborate in Downstream Rare Earth Technologies with Proposed Investments Totalling £3.5 Million (C$5.6Million)HighlightsMkango has signed a non-binding term sheet with CoTec Holdings Corp. (\"CoTec\"), an ESG-focused company investing in innovative technologies, led by Julian Treger and Braam Jonker, in relation to investments by CoTec into Mkango and Mkango's subsidiary, Maginito Limited (\"Maginito\"), and collaboration in downstream rare earth technologies (the \"Transactions\"). The Transactions are expected to include the following key components:CoTec will invest £2 million (C$3.2 million) into Mkango by way of a two-year, unsecured convertible note (\"Mkango Note\") with 5% interest, convertible into Mkango shares at 27p each, providing Mkango with additional working capital as it advances financing discussions for the Songwe Hill rare earths project (\"Songwe\") in Malawi and the Pulawy separation plant project in PolandCoTec will also invest £1.5 million (C$2.4 million) into Maginito, equating to a 10% equity stake in Maginito for the purposes of strategic investments in downstream rare earth technologies and working capitalRestructuring resulting in Mkango's wholly owned subsidiary, Mkango Rare Earths UK Limited, (\"Mkango UK\") becoming a wholly owned subsidiary of MaginitoIn consideration of a four-month exclusivity period, CoTec will advance £500,000 (C$805,000), no later than June 20, 2022 (the \"Advance\"), offsetable against and carrying largely the same terms as the Mkango NoteMkango and CoTec will enter into a co-operation agreement regarding future investments in rare earth processing technology opportunities in the United StatesThe Transactions are subject to various conditions, including definitive documentation, restructuring in relation to Mkango UK and TSX Venture Exchange approval. There can be no certainty that any agreement will be reached nor as to the final terms of the proposed investment.LONDON, UK and VANCOUVER, BC / ACCESSWIRE / May 30, 2022 / Mkango Resources Ltd. (MKA) (the \"Company\" or \"Mkango\") and CoTec Holdings Corp. (TSXV:CTH) (\"CoTec\") are pleased to announce that, on May 29, 2022, they signed a non-binding term sheet in relation to a potential £2 million convertible note investment in Mkango bearing 5% interest, a potential £1.5 ...