Mkango Resources Announces Closing of Transaction to Acquire 100% of the Songwe Hill Rare Earths Project and Maginito

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[{"type":"text","content":" LONDON and VANCOUVER, British Columbia, Nov. 01, 2021 (GLOBE NEWSWIRE) -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the \"Company\" or \"Mkango\") is pleased to announce that it has received final approval from the TSX Venture Exchange in respect of the transaction announced on 5 August 2021 whereby Mkango has acquired (the “Acquisition”) the 49% interest of Talaxis Limited (“Talaxis”) in Lancaster Exploration Limited (“Lancaster”), which owns the Songwe Hill Rare Earths Project in Malawi, and Talaxis’ 24.5% interest in Maginito Limited (“Maginito”), which holds a 25% interest in rare earth magnet recycler HyProMag Limited (“HyProMag”), for common shares in the Company (the “Shares”) aggregating to 54,166,666 Shares (the “Acquisition Shares”). As a result of the Acquisition, Mkango owns 100% of the shares of Lancaster and 100% of the shares of Maginito. Mkango has also received final approval from the TSX Venture Exchange in respect of the issuances of 2,916,666 Shares to Mr Derek Linfield, Chairman of Mkango, and 1,666,666 Shares to Resource Early Stage Opportunities Company (“RESOC”) pursuant to the placing announced on 5 August 2021 (together, the “Subscription Shares”). In addition, the Company has received final approval for the issue of 541,666 Shares to Bacchus Capital Advisers (“BCA”) as part payment of its advisory fee in connection with the Acquisition (“Fee Shares”). Following this and the issuance of Shares to two optionholders referred to below, Talaxis will own 69,452,381 Shares, representing approximately 32.4 per cent. of the enlarged issued share capital, Mr. Derek Linfield will own 8,056,227 Shares, representing approximately 3.8 per cent. of the enlarged issued share capital and RESOC will own 15,999,747 Shares, representing approximately 7.5 per cent. of the enlarged issued share capital. The Shares issued to Talaxis in connection with the Acquisition and to Mr. Derek Linfield, RESOC and BCA are subject to a statutory hold period in Canada expiring on the date that is four months and one day from the issuance of the Shares. In connection with the closing of the Acquisition, Mkango has issued 33,333 non-transferable warrants to Merlin Partners LLP which advised in connection with issuance of the Shares to RESOC. Each warrant is exercisable for a period of 12 months with an exercise price of £0.24 per warrant. T...

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