Mkango Resources Ltd. (LON:MKA) (CVE:MKA) has announced the appointment of Bacchus Capital Advisers Limited as strategic and financial adviser, encompassing mergers and acquisitions, takeover defence, strategic and other financial advice.
A London-based independent investment and merchant banking boutique, Bacchus Capital has been involved in building some of the world's most successful mining companies from the earliest stages and have played a key role in many of the metals and mining industry's most significant transactions in recent decades.
READ: Mkango completes extensive hand-auger drilling and soil sampling programme to identify rutile prospects at Mchinji licence in Malawi
In a statement, William Dawes, Mkango's chief executive commented: "We are very pleased to appoint Bacchus Capital as strategic and financial adviser. This comes at a critical time in Mkango's development, against the backdrop of transformational changes in the rare earths sector, and we look forward to working with Bacchus Capital to best position the company for new opportunities and to increase value for shareholders."
Richard Allan, managing director and COO of Bacchus Capital added: "We are excited to begin working with Mkango at a time when the wider market is starting to appreciate the material structural supply deficit facing critical materials, such as rare earths. Mkango will play an important role in supplying the increasing demand for the rare earths required to support a global shift towards a sustainable economy, specifically in light of the increased demand for electric vehicles and wind power."
Under the terms of the advisory agreement, Bacchus Capital will receive a fee of US$30,000 and, subject to TSX Venture Exchange approval, 325,000 Mkango shares on January 31, 2021, and a further 625,000 shares on December 18, 2021, should its engagement continue with the company until such date.
Mkango's primary business is exploration for rare earth elements and associated minerals in the Republic of Malawi, a country whose hospitable people have earned it a reputation as "the warm heart of Africa". The Company holds interests in four exclusive prospecting licenses in Malawi: the Phalombe licence, the Thambani licence, the Chimimbe Hill licence and the Mchinji licence.