Mkango Resources (AIM:MKA) has completed a capital raise, totalling £12.5 million ($23.9 million), which will be used for a potential acquisition in Germany, as well as capital expenditure requirements across its UK and German operations.
A total of 37.87 million shares were issued at £0.033. The placement was conducted by Peel Hunt, H&P Advisory and Alternative Resource Capital, acting together as joint bookrunners. Red Cloud Securities acted as the Canadian advisor, while JUB Capital Management acted as corporate finance advisor.
CEO William Dawes says the support received is an endorsement of Mkango’s strategy and the long-term opportunity across its business which span the whole rare earths supply chain.
“Importantly, this financing strengthens our balance sheet and provides us with flexibility to advance our near-term priorities, including growth initiatives in the UK, Germany and beyond,” Dawes says.
Mkango Resources is a dual-listed explorer and developer focused on producing recycled rare earth magnets, alloys and oxides.
Write to Aaliyah Rogan at Mining.com.au
Images: Mkango Resources
