Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) has conditionally raised £3.5mln (C$5.7 million) gross through a placing to finalise plans for the Songwe Hill rare earths project in Malawi and to start work on a magnet recycling facility in Germany.
At Songwe Hill, Mkango said it is finalising the Mine Development Agreement with the Malawi government, while its associate HyProMag is targeting first production from the 100 tonnes battery plant in 2024.
HyProMag and the University of Birmingham are developing a similar plant in the UK with production targeted for the second half of 2023.
Mkango added that it is still in talks with potential partners for Songwe Hill and its new project at Pulawy in Poland.
This latest funding round will comprise a placing and subscription at 12.5 p a share.
William Dawes, Mkango’s chief executive, said the fundraising positions the company for some major upcoming milestones, as negotiations for the Mine Development Agreement approach their conclusion.