Mkango Resources (CVE:MKA) told investors it had brought in C$750,000 in the first tranche of its previously announced C$1.5mln private placing to further advance its Songwe rare earths project in Malawi.
The plan is to deploy the new money directly into Songwe, specifically on developing the process sheet, on technical and product marketing expenditures, on an environmental, social and health impact assessment - key parts of the feasibility study - and on other on-going costs in Malawi.
The firm said 30 million units were issued at C$025 per unit for gross cash proceeds of C$750,000.
Non-executive chairman Derek Linfield subscribed for more than 2.1mln units and now is interested in around 3.5% of the share capital of the mining group.
As revealed last month, the firm also has a plan to list on AIM.
Mkango is already listed on the Venture exchange in Canada, but a listing in London will widen the pool of capital available to the company, increase the size of its investment audience and potentially boost liquidity.
What’s more, London knows Africa and for many years has been the pre-eminent destination for financing African mining projects.