Mkango Releases Second Quarter 2024 Results

In This Article:

LONDON, UK and VANCOUVER, BC / ACCESSWIRE / August 30, 2024 / Mkango Resources Ltd (AIM:MKA)(TSXV:MKA) (the "Company" or "Mkango") announces that it has released the Financial Statements and Management's Discussion and Analysis for the three month period ending 30 June 2024. The reports are available under the Company's profile on the SEDARplus website (https://www.sedarplus.ca/landingpage/) and on the Company's website (https://mkango.ca/investors/financials/).

To view the Financial Statements, please click here: https://www.rns-pdf.londonstockexchange.com/rns/2288C_1-2024-8-29.pdf

To view the Management Discussion and Analysis, please click here: https://www.rns-pdf.londonstockexchange.com/rns/2288C_2-2024-8-29.pdf

RECENT FINANCINGS:

Subsequent to quarter end, the Company announced the following financings:

  • On 21 August 2024, the Company conditionally raised gross proceeds of £1.25 million (approximately US$1.58 million) through the issuance, on a private placement basis, of 25,000,000 Units of the Company at a price of £0.05 per Unit (approximately US$0.063). A Unit consists of one common share of the Company and one warrant. Each warrant will entitle the holder to acquire one common share at a price of £0.07 (approximately US$0.089) per common share for a period of three years following the closing of the subscription which is expected to close on or about 5 September 2024. This placing will allow the Company to acquire additional equipment for the 2025 commercial development of HyProMag's rare earth magnet recycling operations at Tyseley Energy Park in Birmingham, UK and its recycling operation at Pforzheim, Germany, in addition to increasing working capital.

  • On 21 August 2024, EIT RawMaterials provided funding of €200,000 (approximately US$214,111). This will fund the commencement of process optimisation for the Songwe Hill Rare Earths Project in Malawi, a future source of mixed rare earth carbonate feed for the Pulawy Project.

  • Following the £1.25m (US$1.58m) raised in August 2024 from existing shareholders and the investment from EIT, Mkango remains well positioned to cement its leading position and early mover advantage in rare earth magnet recycling.

  • On 29 August 2024, it was announced that HyProMag GmbH ("HyproMag Germany") is participating in the €8 million grant funded GREENE project, of which HyProMag Germany will receive €350,125.

SECOND QUARTER HIGHLIGHTS:

  • During the second quarter, Mkango continued to advance its recycling interests in the UK and Germany towards commercial production in 2025 via HyProMag. In parallel, the Company progressed the on-going feasibility study forHyProMag USA, LLC ("HyProMag USA"). It is reviewing strategic options for the Songwe Hill Rare Earths Project and Pulawy Rare Earths Separation Project in Malawi and Poland, respectively.Discussions are ongoing with potential strategic investors, project finance providers, grant funding bodies and other sources, to support recycling scale-up opportunities and further technology roll-out.

  • During the period, Mkango Rare Earths UK ("Mkango UK") successfully commissioned a pilot plant producing separated magnet rare earths (neodymium/praseodymium and dysprosium/terbium carbonates or oxides) via a long-loop recycling process.

  • A non-binding Memorandum of Understanding ("MoU") was signed between HyProMag and Envipro Holdings Inc. ("Envipro") to launch a collaboration on rare earth magnet recycling in Japan and the United Kingdom.

  • Mkango completed a fundraising of £750,000 (US$955,000) in April 2024, including a £150,000 (US$191,000) investment by Mkango CEO William Dawes.

  • Additionally, the Company undertook a significant cost-cutting exercise in the quarter, and focused its activities on the recycling business, enabling a 35% reduction in ongoing operating cost requirements for the business.

  • Loss after tax for the quarter ended 30 June 2024 was US$659,320 compared to US$1,085,092 for the quarter ended 30 June 2023.