Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) said CoTec Holdings Corp, an ESG-focused investor in innovative technologies, has agreed to advance a further £500,000 to the company through a convertible advance note.
As part of the agreement, Mkango has agreed to extend CoTec's exclusivity period for the two companies to collaborate on future investments in rare earth processing technology opportunities in the US until November 30, 2022.
In May, Mkango announced a proposed £3.5mln investment by CoTec and the rare earth co-operation deal between to two companies.
The advance is to be completed no later than September 15, 2022.
CoTec may extend exclusivity to December 31, 2022, by completing the £2mln convertible note to Mkango by October 15, 2022.
Mkango's strategy is to develop new sustainable primary and secondary sources of neodymium, praseodymium, dysprosium and terbium to supply accelerating demand from electric vehicles, wind turbines and other clean technologies.