Mkango Resources (CVE:MKA) has secured C$1.125mln from investors in a non-brokered placing.
The company, which has rare earth interests in Africa, has sold a total of 45mln units – containing one share and half a share warrant - priced at 2.5 cents each.
An initial tranche of 30mln units closed in July, and today the company confirm that the second tranche of 15mln units have now cleared.
Will Dawes, Mkango’s chief executive said the company now has “a strong platform” to advance the Songwe rare earth project, in Malawi.
“The placement was completed successfully under very difficult market conditions,” Dawes said, adding: “and, together with our planned dual listing on the London Stock Exchange, will provide a strong platform for continued advancement of the Songwe Hill project in Malawi, one of the few rare earth projects outside China to have advanced beyond the prefeasibility stage."
Mkango said the cash proceeds would fund the continuation of flow sheet optimization, product marketing and other technical expenditures, as well as expenditures relating to an environmental, social and health impact assessment (ESHIA) which forms part of a feasibility study.