Mkango Resources (CVE:MKA) has increased its previously announced financing to advance its Songwe Hill rare earth project in a new agreement, which sees asset specialist Sprott invest in the company.
At the end of January, the firm unveiled a non-brokered placing to raise up to C$1million.
Mkango has now entered into a non-binding term sheet with affiliates of Sprott to act as finders for a revised private placing, under which the company will issue 15 mln units at C$0.10 each for proceeds of up to C$1.5mln.
It is anticipated that Sprott affiliates will subscribe for a minimum of C$750,000 with the balance largely coming from Mkango directors, insiders or existing shareholders.
Each unit will consist of one Mkango share and one purchase warrant, entitling the bearer to buy a further share at a price of C$0.20 for five years from the date of the closing of the placing.
The cash from the placing will be used to finalise the pre-feasibility study, move to the feasibility stage and general corporate purposes, the company said.
Will Dawes, Mkango's chief executive, told Proactive he saw Sprott's involvement in the financing as "very positive".
Sprott has an extensive presence and reputation in North America.
"We think this gives us an opportunity to increase our shareholder base in North America," he said, adding this was important as the company moved towards the feasibility and development of the project.
Dawes explained how a large proportion of the pre-feasibility study for the project in Malawi had already been done with SNC-Lavalin completing the first phase.
Currently, Mkango is working on optimisation studies on the hydrometallurgical process.
No further drilling, which is expensive, is planned, he said.
Dawes said the firm was aiming to complete the PFS within around three months. Reported by Proactive Investors 57 minutes ago.
At the end of January, the firm unveiled a non-brokered placing to raise up to C$1million.
Mkango has now entered into a non-binding term sheet with affiliates of Sprott to act as finders for a revised private placing, under which the company will issue 15 mln units at C$0.10 each for proceeds of up to C$1.5mln.
It is anticipated that Sprott affiliates will subscribe for a minimum of C$750,000 with the balance largely coming from Mkango directors, insiders or existing shareholders.
Each unit will consist of one Mkango share and one purchase warrant, entitling the bearer to buy a further share at a price of C$0.20 for five years from the date of the closing of the placing.
The cash from the placing will be used to finalise the pre-feasibility study, move to the feasibility stage and general corporate purposes, the company said.
Will Dawes, Mkango's chief executive, told Proactive he saw Sprott's involvement in the financing as "very positive".
Sprott has an extensive presence and reputation in North America.
"We think this gives us an opportunity to increase our shareholder base in North America," he said, adding this was important as the company moved towards the feasibility and development of the project.
Dawes explained how a large proportion of the pre-feasibility study for the project in Malawi had already been done with SNC-Lavalin completing the first phase.
Currently, Mkango is working on optimisation studies on the hydrometallurgical process.
No further drilling, which is expensive, is planned, he said.
Dawes said the firm was aiming to complete the PFS within around three months. Reported by Proactive Investors 57 minutes ago.
