The listing will coincide with a placement of shares by the Republic of Malawi-focused rare earths explorer, plus a three-to-one share consolidation that would have the effect of reducing the number of shares in issue (ahead of the placement) from 121.26mln shares to 40.42mln.
Once the consolidation has been effected, Mkango will issue 30.3mln post-consolidation units at a price of 3.3p per unit.
As is commonplace with share issues in Canada, but rare in the UK, each unit will comprise one common, or ordinary, share and a purchase warrant. The purchase warrant will entitle the holder to buy one common share at a price of 6.6p for a period of up to three years following the closing date of the placement.
Under certain conditions, the expiration period of the warrants may be brought forward.
Funds from the share issue should provide Mkango with sufficient working capital for at least 18 months.
Shares in Mkango fell to C$0.015 from C$0.020 at last night's close.