London / Vancouver: January 7, 2021 - Mkango Resources Ltd. (AIM/TSX-V: MKA) (the Company or Mkango ) is pleased to announce that it has received TSX-V approval for the cashless warrant exercise by Talaxis Limited ( Talaxis ) announced on 4 January 2021, whereby Talaxis will be issued with 1,000,000 Shares ( New Shares ) in lieu of payment for 12,000,000 Shares at 6.6 pence. This significantly reduces the dilution to other Mkango shareholders and avoids the Company issuing 12,000,000 shares at a significant discount to the current market price of Mkango Shares.
Following the issuance of the New Shares to Talaxis pursuant to the amended warrant, Talaxis will increase its ownership of Mkango from 14,285,715 shares to 15,285,715 shares post-warrant exercise, representing an increase from 10.7% to 11.3% of the issued and outstanding shares. Talaxis maintains its 49% ownership in the Songwe Hill Rare Earths Project (the Project ) and its option to acquire a further 26% interest
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Mkango s primary business is 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 . The Company holds interests in four exclusive prospecting licenses in Malawi: the Phalombe licence, the Thambani licence, the Chimimbe Hill licence and the Mchinji licence.
The main exploration target in the 51% held Phalombe licence is the Songwe Hill rare earths deposit. This features carbonatite-hosted rare earth mineralisation and was subject to previous exploration in the late 1980s. Mkango completed an updated Pre-Feasibility Study for the project in November 2015 and a Feasibility Study is currently underway, the initial phases of which included a 10,900 metre drilling programme and an updated mineral resource estimate, announced in February 2019. In March 2019, the Company announced receipt of a £7 million (C$12.3 million) investment from Talaxis to fund completio