Mkango Resources Ltd (AIM:MKA, TSX-V:MKA, OTC:MKNGF) has received final approval from the Toronto Venture Exchange in respect of the transaction announced on 5 August 2021 whereby Mkango has acquired Talaxis’ 49% interest in Lancaster Exploration Limited, which owns the Songwe Hill rare earths project in Malawi, and Talaxis’ 24.5% interest in Maginito Limited, which holds a 25% interest in rare earth magnet recycler HyProMag Limited.
The consideration is just over 54mln Mkango shares.
As a result of the transaction, Mkango now owns 100% of the shares of Lancaster and 100% of the shares of Maginito.
Following this and the issuance of shares to two option-holders referred to below, Talaxis will own just under 69.5mln shares in Mkango, representing approximately 32.4% of the enlarged issued share capital.
Mkango has also entered into a lock-in deed with Talaxis which provides, amongst other things, that for so long as it holds 10% or more of the company’s shares, Talaxis will not, during the first 12 months following the transaction sell or transfer any of its shares, other in the case of certain limited exceptions.
For the second 12 months following the Acquisition, Talaxis has agreed to an orderly market arrangement.
Following the deal, Stephen James Motteram has been appointed as a non-executive director.
Motteram has 25 years’ experience in financial institutions and trading houses, specialising in project development, commodities trading, M&A, and corporate restructuring with transaction experience in Australia, China, SE Asia, Africa, South America, Russia and the Middle East.
He has worked for the Noble Group Holdings, the parent group of Talaxis, since 2011 and is currently their Head of Corporate Development.