Mkango Closes £2.34m Private Placement: Fueling Growth in Rare Earth Recycling and Mining

Mkango Resources Ltd. (AIM:MKA, TSX-V:MKA) has successfully closed a £2.34 million (C$4.11 million) private placement, issuing 29,187,500 common shares at a price of 8 pence each. The net proceeds, after fees, amount to approximately £2.22 million (C$3.9 million). This strategic move will enable Mkango to advance its recycling operations and mining projects, positioning the company for future growth.

The funds raised will be allocated to several key areas, aligning with Mkango's strategic objectives:

1. Acquisition of additional equipment for HyProMag GmbH's recycling facility in Germany: Mkango will use a portion of the funds to acquire equipment for HyProMag GmbH's new recycling facility in Germany. This facility, with a minimum capacity of 100 tonnes per year (tpa) of NdFeB, will complement the similar-sized plant being developed at Tyseley Energy Park in the UK. First production from this facility is targeted for 2024, further strengthening Mkango's position in the European rare earth magnet recycling market.
2. Orders of long lead time equipment in Germany: Mkango will also use the funds to place orders for long lead time equipment in Germany, unlocking additional grant funding opportunities.
3. Funding ongoing recycling and corporate costs: The remaining funds will be allocated to cover ongoing recycling development costs in Germany and the UK, as well as corporate costs.



The successful closing of this private placement demonstrates Mkango's commitment to advancing its recycling and mining assets, ultimately positioning the company for growth and increased value. The funds raised will enable Mkango to:

* Expand its recycling capacity in Europe, strengthening its position in the supply chain and creating a strong platform for future growth.
* Kick-start development of a new rare earth magnet recycling facility in Germany, complementing the similar-sized plant in the UK.
* Advance discussions with potential lenders and strategic investors for the Songwe Hill Rare Earths Project and the Pulawy Separation Project.
* Sequentially develop the Projects, with initial focus on the stand-alone development of Songwe to produce a mixed rare earth carbonate.



In conclusion, Mkango's £2.34 million private placement is a significant step towards advancing the company's recycling and mining assets, ultimately positioning it for growth and increased value. By allocating funds to strategic areas, Mkango is well-positioned to capitalize on opportunities in the rare earth magnet recycling market and the broader rare earths sector.