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Mkango Resources (LSE:MKA) announced on Thursday the successful completion of a private placement, raising £1.25 million to bolster its rare earth magnet recycling operations in the UK and Germany.
The AIM-traded company raised the funds through the issuance of 25 million shares at 5p each. Each share came with a warrant, granting the holder the option to purchase an additional share at 7p per share over the next three years, with the warrants expiring in September 2027. Additionally, Mkango issued 1.25 million broker warrants to Jub Capital Management, exercisable at 5p per share for a three-year term.
All shares and warrants are subject to a statutory hold period in Canada, which will expire on January 5, 2025. After accounting for fees, the net proceeds of £1.19 million will primarily be allocated towards acquiring equipment for HyProMag UK and HyProMag Germany. This funding supports the commercial development of rare earth magnet recycling facilities located at Tyseley Energy Park in Birmingham and in Pforzheim, Germany. The remaining funds will be used for general working capital purposes.
The newly issued 25 million shares began trading on AIM on Thursday and will also be listed on the TSX-V, bringing Mkango’s total outstanding share capital to 293,453,574 shares.
At 1058 BST, shares in Mkango Resources were trading down by 3.46% at 6.28p. The capital raised through this placement is expected to advance Mkango’s rare earth magnet recycling initiatives, which are crucial for the company's expansion and operational goals in the recycling sector.
