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Rare earths & specialist minerals

Mkango Resources receives CoTec funding

Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) said it has received £452,000 of funding from CoTec, an ESG technology group.

According to a statement from the Canadian exploration company, the funding is the final instalment under the £2mln convertible loan agreement.

As per an announcement last week, CoTec agreed to issue a two-year, £2mln secured convertible loan to Mkango with 5% interest, convertible into shares at 27p each or into subsidiary Maginito shares.

CoTec will also subscribe for a 10% equity stake in Maginito for an investment of £1.5mln.

Once the deals have closed, the two companies have agreed to cooperate on future rare earth opportunities, while Mkango Rare Earths UK will become a wholly owned subsidiary of Maginito.