Mkango Resources Ltd on Thursday said that it has closed a £750,000 private placement, which included a £150,000 investment by Chief Executive Officer William Dawes.
Mkango is a Vancouver-based mineral explorer and developer with an extensive exploration portfolio in Malawi, including the Mchinji rutile exploration project and Chimimbe nickel-cobalt project.
The net proceeds of the placement, for which 15.0 million shares were issued at 5 pence each, were £720,000 after fees.
Mkango intends to use these funds to buy additional equipment for the UK recycling business, in order to underpin HyProMag’s transition to first commercial sales of recycled neodymium magnets in the UK. The proceeds will also go towards orders of long lead time equipment in Germany, and to fund ongoing recycling and corporate costs.
Also on Thursday, Mkango said that it has has launched a review of strategic options for its advanced stage Songwe Hill rare earth project in Malawi, and the Pulawy rare earth separation project in Poland.
Mkango Resources shares were trading 9.6% lower at 6.10 pence each in London on Thursday morning. The firm has a market cap of C$27.9 million, around £16.2 million.
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