Mkango Resources Ltd (LON:MKA) has received approval from the TSX-Venture exchange for the issue of Mkango shares to Talaxis Limited.
Talaxis is to be granted 1mln shares and in return has agreed to give up the right to buy 12mln Mkango shares at 6.6p each. Mkango shares currently trade at around 16p so although Mkango misses out on receiving £720,000 as a result of Talaxis’s old warrants being replaced with (fewer) new warrants, Mkango shareholders avoid significant share ownership dilution.
After receiving the 1mln new shares, Talaxis will hold 15.3mln shares in Mkango, representing around 11.3% of all the Mkango shares in issue; Talaxis’s previous stake was 10.7%.