Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) said CoTec Holdings Corp will transfer £500,000 to Mkango before 30 June, subject to approval, as part of a previously announced potential investment.
Last month, Mkango revealed a proposed £3.5mln investment by CoTec as the companies are looking to collaborate on future investments in rare earth processing technology opportunities in the US. CoTec agreed to advance £500,000 in return for a four-month exclusivity period.
Mkango said today that binding legal documentation for a £500,000 unsecured convertible advance note has now been completed. Under the terms of the advance, CoTec will transfer the sum to Mkango within seven business days of conditional Toronto Venture Stock Exchange approval, which is pending, with a transfer to be made no later than 30 June.