Mkango Resources Ltd. (AIM/TSX-V: MKA) (the “Company” or “Mkango”) is pleased to announce the results of the definitive feasibility study (“DFS”) for the Songwe Hill Rare Earths Project (“Songwe” or the “Project”) in Malawi.
The Company will host an investor conference call at 3pm UK time / 10am Eastern Time on Friday 8th July 2022. Please join the call at least 5 minutes before the booked start time to allow the operator to transfer you into the call by the scheduled start time: Canada toll free: 1 866 378 3566; UK toll free: 0808 109 0700; USA toll free: 1 866 966 5335; Password: Mkango DFS Results.
The DFS indicates a US$559.0 million post-tax NPV, using a 10% nominal discount rate, and 31.5% post-tax IRR for 100% of Songwe. The DFS is based on Songwe as a stand-alone project selling MREC as opposed to separated rare earth oxides and excludes Pulawy, which has potential to add significant downstream value. The financial analysis doesn’t reflect any changes to the fiscal regime that may be contained in the MDA that is currently being negotiated with the Government of Malawi. The Company plans to announce the results of the feasibility study for an integrated project comprising both Songwe and Pulawy (the “Integrated DFS”) when both the MDA is completed for Songwe and the feasibility study is completed for Pulawy.
With the release of the Songwe DFS and in anticipation of releasing the Integrated DFS, Mkango continues to advance ongoing discussions with potential strategic investors, development and commercial banks, and off-takers, working closely with its brokers, its project finance advisors, Terrafranca Capital Partners Ltd (www.terrafranca.co.uk), its United States strategic advisors, Jones Group International (www.jonesgroupinternational.com) and EIT RawMaterials (www.eitrawmaterials.eu) within the framework of the European Raw Materials Alliance.
During the week of 27th June 2022, the Company hosted site visits to Songwe for a number of major commercial and development banks.
Derek Linfield, Chairman of Mkango, stated: “This is a major milestone which few rare earth companies have been able to reach. It reflects the perseverance and outstanding work completed by our executive and management team since Project inception in 2010, as well as by our excellent team of international consultants, advisors and academic partners, in addition to the longstanding support of our local stakeholders and the Government of Malawi. We look forward to developing this exciting Project for the benefit of Malawi and our shareholders.”
William Dawes, Chief Executive of Mkango, stated: “Songwe is the cornerstone of Mkango’s Mine, Refine, Recycle strategy, underpinning development of the proposed Pulawy separation plant in Poland and complementing our interests in rare earth magnet recycling in the UK and Germany via HyProMag. The DFS is a major step forward for the Company, uniquely positioning Mkango as a future supplier of both mined and recycled rare earths for the green transition, against a backdrop of a very strong demand and pricing outlook.”
