Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) shares strengthened on Thursday after it secured funds for its recycling venture.
The AIM-quoted company raised £3 million through a private placement to accelerate the scale-up of its rare earth magnet recycling and manufacturing operations.
It is issuing 10 million units, comprising one share and one-half share warrant, each priced at 30p.
Proceeds are earmarked to help cover ongoing development costs for its HyProMag recycling projects.
“This funding enables continued momentum on the development and scale-up of the rare earth magnet recycling and manufacturing projects in the UK and Germany. and strengthens the balance sheet in a crucial period as we continue to evaluate opportunities for rolling out HyProMag operations in additional jurisdictions and other new growth opportunities,” said chief executive William Dawes.
"The company continues to engage with government and grant funding bodies in the USA, Europe and Asia to advance its projects across the rare earth supply chain."
In London, Mkango shares opened higher, reaching 35.70p, and after an hour of trading were up 10.3% changing hands at 35.29p.