Mkango Resources: A Strategic Move to Align Executive Interests

Mkango Resources Limited (AIM:MKA)(TSXV:MKA) has announced a strategic move to align the interests of its executive management with those of its shareholders. The company has decided to issue a total of 577,271 common shares ("Placement Shares") to its management team, following a reduction in executive salaries and associated bonus schemes. This move is part of the company's ongoing efforts to become a market leader in the production of recycled rare earth magnets, alloys, and oxides, and to develop new sustainable sources of neodymium, praseodymium, dysprosium, and terbium.

The Placement Shares will be issued to William Dawes (236,363 shares), Alexander Lemon (236,363 shares), and Robert Sewell (104,545 shares) at an issue price of 11p (C$0.199) per share, which equates to a premium of 3% and a discount of 3% to the trailing five-day volume weighted average price ("VWAP") of Mkango's shares on AIM and TSX-V respectively. The post-tax bonuses, totaling £63,500 (C$114,884), will be used by the executives to subscribe for the Placement Shares.

The issuance of Placement Shares to the executives constitutes a related party transaction under Multilateral Instrument 61-101 - Protection of Minority Security Holdings in Special Transactions ("61-101"). The issuance is exempt from the formal valuation requirements of Section 5.4 of MI 61-101 and the minority shareholder approval requirements of Section 5.6 of MI 61-101. The issuance was approved by the directors of Mkango other than William Dawes and Alexander Lemon.



The Private Placement is expected to close on or around 10 March 2025 and is subject to the receipt of all necessary approvals, including the approval of the TSX-V, and admission of the Placement Shares to trading on AIM. The Placement Shares will rank pari passu with the Company's existing shares and will be subject to a statutory hold period in Canada expiring on the date that is four months and one day from issuance of the Placement Shares, and will also be listed for trading on the TSX-V.

In accordance with the Disclosure Guidance and Transparency Rules (DTR 5.6.1R), the Company hereby notifies the market that immediately following Admission, its issued and outstanding share capital will consist of 326,843,532 shares. The Company does not hold any shares in treasury. Shareholders may use this figure as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure and Transparency Rules.

The issuance of Placement Shares to the executives also constitutes a related party transaction pursuant to Rule 13 of the AIM Rules for Companies. The directors independent of this transaction, being Derek Linfield, Susan Muir, Shaun Treacy, and Philipa Varris, consider, having consulted with SP Angel Corporate Finance LLP, the Company's nominated adviser, that the terms of Mr. Dawes' and Mr. Lemon's participation in the Private Placement are fair and reasonable insofar as the Company's shareholders are concerned.



About Mkango
Mkango is listed on the AIM and the TSX-V. Mkango's corporate strategy is to become a market leader in the production of recycled rare earth magnets, alloys, and oxides, through its interest in Maginito Limited ("Maginito"), which is owned 79.4% by Mkango and 20.6% by CoTec. Mkango is also focused on developing new sustainable sources of neodymium, praseodymium, dysprosium, and terbium to supply accelerating demand from electric vehicles, wind turbines, and other clean energy technologies.

In conclusion, Mkango Resources' decision to issue Placement Shares to its executive management team is a strategic move to align their interests with those of the company's shareholders. This move demonstrates the company's commitment to its long-term strategy and its confidence in the value of its shares. By reinvesting their after-tax bonuses in the company's shares, the executives are signaling their confidence in Mkango's prospects and their dedication to driving the company's success.