Mkango Resources Appoints SENET as Lead Engineer for the Songwe Hill Rare Earths Project Feasibility Study in Malawi
TSX VENTURE: MKA
LONDON and VANCOUVER, British Columbia, Sept. 09, 2019 (GLOBE NEWSWIRE) -- Mkango Resources Ltd. (AIM/TSX-V: MKA) (the "Company" or "Mkango"), the rare earths development company focused on the advanced stage Songwe Hill project (“Songwe”) in Malawi, is pleased to announce that it has appointed SENET, a DRA Global company, as lead engineer and project manager for completion of the Feasibility Study. The Feasibility Study is being funded by Mkango’s strategic partner, Talaxis Limited (“Talaxis”), a wholly-owned subsidiary of Noble Group Holdings Limited.
SENET has longstanding experience in project management and in providing detailed multidiscipline engineering, procurement, logistics management, and construction services to the mining, mineral processing, infrastructure and materials handling industries. It has extensive project and construction experience throughout Africa and boasts the largest and most advanced hydrometallurgical process engineering team on the continent.
SENET’s appointment is another key milestone for completion of the Feasibility Study and development of the project. A number of workstreams for the study are underway, including mining studies, comminution, flotation, hydrometallurgical test work, and studies in relation to the environmental, social and health impact assessment.
William Dawes, Chief Executive of Mkango stated: “We are very pleased to appoint SENET for the Songwe feasibility study. The selection of SENET was measured against a range of criteria, and its technical capabilities and African experience were key factors in the decision. Mkango has the right financial and technical partnerships in place to enable development of Songwe into Africa’s leading producer of rare earths.”
Darren Naylor, Managing Director of SENET stated: “SENET is looking forward to working with Mkango and all stakeholders on this project, which offers a unique opportunity for SENET to continue demonstrating its diverse capability across the African Continent.”
Daniel Mamadou, Executive Director of Talaxis stated: “We are delighted to continue with our funding and strategic support of the Songwe Hill project, which has the potential to become a leading rare earths producer in Africa. Songwe Hill plays an important part in Talaxis’ upstream investment portfolio, as we aim to become a global leader in technology metals project development and the partner of choice for the technology metal and rare earth industry.”
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About Mkango Resources Limited
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 completion of the Feasibility Study. Following completion of the Feasibility Study, Talaxis has an option to acquire a further 26% interest in Songwe by arranging financing for project development including funding the equity component thereof.
Mkango also holds a 75.5% interest in Maginito, with the balance owned by Talaxis. Maginito is focused on downstream opportunities relating to the rare earths supply chain, in particular neodymium alloy powders, magnet and other technologies geared to accelerating growth in the electric vehicle market.
The main exploration targets in Mkango’s remaining three 100% held licences are, in the Thambani licence, uranium, niobium, tantalum and zircon, in the Chimimbe Hill licence, nickel and cobalt and, in the Mchinji licence, nickel, cobalt, base metals and graphite.
For more information, please visit www.mkango.ca.
SENET, a wholly owned subsidiary of DRA Global, was founded in 1989 and has its head office in Johannesburg, South Africa. For nearly three decades, SENET has provided project management, detailed multidiscipline engineering, procurement, logistics management, and construction services to the mining, mineral processing, infrastructure and materials handling industries. SENET has extensive project and construction experience in remote countries throughout Africa, as well as in the Middle East, Asia, and Central and South America. SENET has successfully completed more than 500 projects and studies in Africa and has completed more copper-cobalt solvent extraction (SX) and electrowinning (EW) plants on the African Copperbelt than any other firm in the market. SENET employs over 300 people and boasts the largest and most advanced hydrometallurgical process engineering team in Africa.
For more information, please visit: www.senet.co.za
Founded in 2016, Talaxis is a wholly-owned subsidiary of Noble Group Holdings Limited and invests in and develops projects that are related to technology metals, with a special focus on rare earth elements. Talaxis focuses on battery and electric vehicle materials such as nickel, lithium, graphite and vanadium. Talaxis has supply chains partners in the upstream and midstream segments, and also focuses on research and development solutions for industrial consumers in the downstream segment. Talaxis prioritises sustainable ventures with a strong emphasis on corporate social responsibility. These include projects that contribute to the decarbonisation of the economy and that are aligned with the United Nations Sustainable Development Goals.
For more information, please visit www.talaxis.com
Cautionary Note Regarding Forward-Looking Statements
This news release contains forward-looking statements (within the meaning of that term under applicable securities laws) with respect to Mkango and its business. Generally, forward looking statements can be identified by the use of words such as “plans”, “expects” or “is expected”, “scheduled”, “estimates” “intends”, “anticipates”, “believes”, or variations of such words and phrases, or statements that certain actions, events or results “can”, “may”, “could”, “would”, “should”, “might” or “will”, occur or be achieved, or the negative connotations thereof. Forward looking statements in this news release include statements with respect to completion of the feasibility study and of the transactions contemplated in the agreement with Talaxis, as well as the use of proceeds from the investments into the Company by Talaxis and the timing of such expenditures. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. Such factors and risks include, without limiting the foregoing, market demand for the metals and associated downstream products for which Mkango is exploring, researching and developing, the positive results of a feasibility study on the Project, delays in obtaining financing or governmental or stock exchange approvals. The forward-looking statements contained in this news release are made as of the date of this news release. Except as required by law, the Company disclaims any intention and assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable law. Additionally, the Company undertakes no obligation to comment on the expectations of, or statements made by, third parties in respect of the matters discussed above.
For further information on Mkango, please contact:
Mkango Resources Limited
|William Dawes||Alexander Lemon|
|Chief Executive Officer||President|
UK: +44 207 3722 744
Canada: +1 403 444 5979
Financial Public Relations
Tim Blythe, Camilla Horsfall, Julia Tilley
UK: +44 207 138 3204
SP Angel Corporate Finance LLP
Nominated Adviser and Joint Broker
Jeff Keating, Caroline Rowe
UK: +44 20 3470 0470
Alternative Resource Capital
Alex Wood, Rob Collins
UK: +44 20 7186 9004; +44 20 7186 9001
For more information about Talaxis, please visit www.talaxis.com or contact:
|Alastair Hetherington / Dorothy Burwell / Humza Vanderman||Peter Brookes / Helen McCombie|
|Tel: +44 20 7251 3801||Tel: +61 2 8234 0100|
The TSX Venture Exchange has neither approved nor disapproved the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This press release does not constitute an offer to sell or a solicitation of an offer to buy any equity or other securities of the Company in the United States. The securities of the Company will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) and may not be offered or sold within the United States to, or for the account or benefit of, U.S. persons except in certain transactions exempt from the registration requirements of the U.S. Securities Act.