ENP Newswire -
Release date- 25022014 -
Under the revised terms of the Private Placement, the Corporation will issue up to 15,000,000 units (the 'Units') at a price of
Each Unit will consist of one common share of the Corporation (a 'Common Share') and one transferable common share purchase warrant (a 'Warrant') entitling the holder to purchase a further Common Share at a price of
If, after four months from the closing date of the Private Placement, the closing price (or the average of the 'bid' and the 'ask', if not traded) of the Common Shares on the
It is anticipated that affiliates of
It is also expected that the Corporation will pay commissions to the Finders consisting of either cash or Units, at the Finder's election, equal to 7% of the proceeds from the Units sold to investors introduced by, or whose subscriptions are attributable to the efforts of, the Finders, or 7% of the number of Units issued in connection with such investors' subscriptions under the Private Placement.
The Corporation will also issue to the Finders non-transferable finder's warrants ('Finder's Warrants') equal to 7% of the number of Units issued in connection with such investors' subscriptions under the Private Placement. Each Finder's Warrant will entitle the Finders to acquire one additional Common Share at a price of
The use of proceeds from the Private Placement will be to finalise the pre-feasibility study for the Songwe project and to facilitate a smooth transition to the feasibility stage, in addition to general corporate purposes.
The securities issued under the Private Placement will have a hold period of four months and one day from the applicable closing date. The Private Placement is subject to receipt of all necessary approvals, including the acceptance of the
This announcement is not for publication or distribution, directly or indirectly, in or into
The Songwe Hill rare earth project is located within the 100% owned Exclusive Exploration Licence 0284/10R in southeast
Mkango's primary business is the exploration for rare earth elements and associated minerals in the
In parallel, the Corporation is also undertaking regional exploration in the second license area, known as Thambani, where a number of areas with potential for uranium, zircon, corundum and niobium have been identified.
The Corporation's corporate strategy is to further develop the Songwe Hill rare earth deposit and secure additional rare earth element and other mineral opportunities in
Cautionary Note Regarding Forward-Looking Statements
This news release may contain forward-looking statements relating to the Corporation. Readers are cautioned not to place undue reliance on forward-looking statements, as there can be no assurance that the plans, intentions or expectations upon which they are based will occur.
By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties, both general and specific, that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause actual performance and results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements.
Such factors and risks include, among others, the interpretation and actual results of current exploration activities; uncertainty of estimates of mineral resources, changes in project parameters as plans continue to be refined; future commodity prices; possible variations in grade or recovery rates; failure of equipment or processes to operate as anticipated; labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of exploration.
The forward-looking statements contained in this press release are made as of the date of this press release. Except as required by law, the Corporation disclaims any intention and assume no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by applicable securities law. Additionally, the Corporation undertakes no obligation to comment on the expectations of, or statements made, by third parties in respect of the matters discussed above.
Tel: +1 (403) 444 - 5979
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