Mkango Resources CFO Boosts Confidence with Share Purchase

Mkango Resources Ltd. (AIM:MKA)(TSXV:MKA) ("Company" or "Mkango") has announced that Robert Sewell, the Chief Financial Officer (CFO) of the Company, has purchased 450,000 common shares without par value ("Shares") at a price of 11p per share on February 11, 2025. Following this purchase, Robert Sewell's beneficial ownership of shares in the Company has increased to 700,000, representing 0.21% of the issued share capital and total voting rights of the Company.

This insider trading activity by Robert Sewell reflects a positive outlook on the company's current financial health and future prospects. The purchase of shares by the CFO indicates confidence in the company's direction and belief that the shares are undervalued at the current price. This move also demonstrates that the CFO is willing to invest his own money in the company, aligning his interests with those of other shareholders.

Mkango Resources is listed on the AIM and the TSX-V, with a corporate strategy focused on becoming a market leader in the production of recycled rare earth magnets, alloys, and oxides. The company's interest in Maginito Limited, owned 79.4% by Mkango and 20.6% by CoTec, is focused on short loop and long loop rare earth magnet recycling in the UK, Germany, and the United States. Mkango also owns the advanced stage Songwe Hill rare earths project and an extensive rare earths, uranium, tantalum, niobium, rutile, nickel, and cobalt exploration portfolio in Malawi, as well as the Pulawy rare earths separation project in Poland.

The purchase of shares by Robert Sewell, the CFO of Mkango Resources, has several implications for the company's share capital and voting rights, as well as the overall market perception of Mkango Resources:

1. Increase in Share Capital: The purchase of 450,000 shares increases the total number of shares in issue, thereby diluting the share capital. However, the exact impact on the share capital cannot be determined without knowing the initial number of shares in issue.
2. Increase in Voting Rights: As a result of the purchase, Robert Sewell's beneficial ownership of shares in the Company increases to 700,000, representing 0.21% of the issued share capital and total voting rights. This increase in voting rights gives Robert Sewell a slightly larger influence over the Company's decisions, although the percentage remains relatively small.
3. Market Perception: The market's reaction to this transaction will depend on various factors, including the company's overall performance, the broader market conditions, and investor sentiment. If the market perceives the purchase as a positive signal, it may lead to an increase in the company's share price. Conversely, if the market is more focused on the dilution effect, the share price may remain unchanged or even decrease.

In conclusion, the purchase of shares by Robert Sewell, the CFO of Mkango Resources, reflects a positive outlook on the company's current financial health and future prospects. This insider trading activity aligns with the company's broader strategy to become a market leader in recycled rare earth magnets, alloys, and oxides, demonstrating confidence in the company's mission, investment in its future, support for its recycling initiatives, and confidence in its projects. The transaction has implications for the company's share capital and voting rights, as well as the overall market perception of Mkango Resources.