Proceeds for finalizing pre-feasibility study on Songwe project
By Marisa Wong
Madison, Wis., Feb. 24 - Mkango Resources Ltd. plans to issue up to 15 million units at C$0.10 per unit for proceeds of up to C$1.5 million. The company announced on Monday that it entered into a non-binding term sheet with affiliates of Sprott Inc. to act as finders under this non-brokered private placement.
Each unit will consist of one common share and one transferable common share purchase warrant. Each warrant is exercisable at C$0.20 for five years from the closing date of the private placement. The strike price is a 100% premium to the Feb. 19 closing share price.
If, after four months from the closing date, Mkango's stock closes above C$0.30 for a period of 20 consecutive trading days, the company may, within three trading days, accelerate the expiry of the warrants to 20 trading days after the issuance of a news release announcing the new expiry date.
The company expects Sprott affiliates to subscribe for a minimum of C$750,000 of the placement with the balance largely subscribed for by directors, insiders or existing shareholders.
Proceeds will be used to finalize a pre-feasibility study for the company's Songwe project and to facilitate a smooth transition to the feasibility stage, as well as for general corporate purposes.
Based in Calgary, Alta., Mkango explores for rare earth elements and minerals in the Republic of Malawi.
| Issuer: | Mkango Resources Ltd.
|
| Issue: | Units of one common share and one warrant
|
| Amount: | Up to C$1.5 million
|
| Units: | Up to 15 million
|
| Price: | C$0.10
|
| Warrants: | One warrant per unit
|
| Warrant expiration: | Five years; may be accelerated if Mkango's stock closes above C$0.30 for a period of 20 consecutive trading days after four months from closing date
|
| Warrant strike price: | C$0.20
|
| Agent: | Non-brokered
|
| Announcement date: | Feb. 24
|
| Stock symbol: | TSX Venture: MKA
|
| Stock price: | C$0.10 at close Feb. 19
|
| Market capitalization: | C$5.06 million
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